UAE: The National Investor allowed to increase capital
Following a unanimous shareholders’ voting at The National Investor’s Extraordinary General Assembly Meeting last year, Sheikha Lubna Bint Khalid Al-Qassimi, UAE's Minister of Economy and Planning, issued a ministerial decree providing the approval for TNI to raise its capital from Dh 77 million to Dh 200 million. The Ministry has also provided the approval to the company’s Board of Directors to split the nominal value of its shares from Dh 100 to Dh 10 per share, by offering additional 12.3 million shares to the Founders.
Mr. Abdullah Mohamed Al Mazrui, Chairman of the TNI said: “The capital increase will allow us to maintain our current leadership position as a principal player in the investment banking scene in the UAE. It will also help us fund the growth of our local and regional activities.”
Dr. Karim El Solh, Chief Executive Officer, TNI said: “This ministerial decree places TNI on the right track to becoming a regional player in the investment and merchant banking arena. The region has enormous prospects, and we are well placed to share in the successes of the current economic boom. Our ten-year track record, resources and bigger capital will translate into larger and more frequent transactions in the investment banking, private equity and asset management arena in the region.”
TNI enjoyed an increase of 212% on its profits in the last fiscal year. Whereby the investment banking revenues went up by 117% and assets under management increased by 124%.
The company has achieved net consolidated earnings of AED 19.2 million for the first six months of its fiscal year September 2004, marking a 93% increase over the corresponding period last year. Revenues from the company’s Investment Banking and Advisory activities climbed to AED 5.2m representing an increase of 446% compared to the same period last year. The portfolio of listed equities, reported a return of approx.130.28% for the year ending 2004, versus 88.4% of the NBAD Index, strongly outperforming the index by approx. 42%.
The latest increase in capital will help the company to underwrite and lead larger investment banking transactions as well as expand its private equity and asset management activities in region.