APS Bank has announced plans to raise around €45 million in fresh equity through a Rights Issue of new ordinary shares, subject to regulatory approval. The move is aimed at strengthening the bank’s capital base to support growth ambitions and meet regulatory requirement

The announcement follows shareholder approval at the bank’s AGM in May. APS said the capital raise will underpin its strategy to expand lending capacity, invest in technology and innovation, and deepen its customer base in Malta and abroad.

The rights issue will also accelerate the gradual dilution of APS’s two largest shareholders – AROM Holdings Ltd, owned by the Archdiocese of Malta, and the Diocese of Gozo. Together, they currently hold 67% of the bank’s shares. Both shareholders have long indicated their intention to reduce their stakes and are expected not to subscribe to the new issue “in any material way, if at all.” Should the rights issue be fully taken up, AROM’s shareholding is expected to fall below 50%.

APS said the Church remains supportive of the bank’s strategy despite the reduced ownership. Unsubscribed rights will be made available via placement to investors with a minimum €500,000 commitment, followed by an intermediaries’ offer to the general public.

The full terms of the issue, including the subscription price and ratio, will be published in a prospectus expected in the second half of October, once clearance is obtained from the Malta Financial Services Authority. The bank expects the process – including listing of the new shares – to be completed before year-end.

CEO Marcel Cassar said the rights issue marks “another important stage in strengthening our equity base and stepping up strategic growth.” He added that APS is seeing one of its strongest quarters to date, with rebounding revenues and profitability, and forecast even stronger results in Q4.

“With a larger capital base and enhanced operational agility, we are well placed to seize emerging opportunities and solidify our position in the market,” Cassar said. “This Rights Issue is not just a financial milestone — it is a launchpad for the next chapter of our success story.”