ADCB to raise $1.66bn through rights issue

17/03/1447 03:21 AST

The Board of Directors of Abu Dhabi Commercial Bank (ADCB) has approved a strategic rights issue to raise up to AED6.1 billion ($1.66 billion).

This initiative marks a decisive step to accelerate the pace of the bank's strong organic growth and deliver substantial long-term value for shareholders.

The rights issue provides shareholders with an opportunity to participate in the bank's continued success, through the subscription for new shares.

This strategic initiative will serve the interests of the bank and its shareholders by enhancing capacity to achieve significant asset growth, whilst remaining ahead of evolving regulatory requirements as the Bank continues to focus on delivering strong and sustainable returns.

The proposed rights issue will increase ADCB's issued capital from AED7,319,947,010 up to AED7,912,175,710 through the issuance of up to 592,228,700 new shares.

Subject to obtaining all necessary regulatory and shareholder approvals, the new shares will be issued at an issue price of AED10.3 per new share, reflecting the nominal value of AED1.00 per new share and a share premium of AED9.3 per new share. This represents a discount of 30% to the closing share price of ADCB's shares on the Abu Dhabi Securities Exchange as of 4 September 2025.

Mubadala Investment Company, the majority shareholder in ADCB, has confirmed its full support for the Board of Director's endorsement to the General Assembly to approve the capital increase through rights issuance and its commitment as an existing shareholder to subscribe in full for its proportional entitlement of the offered shares, which is a testament to Mubadala's support of the Bank's future ambitions.

Focused on value creation
Over the past 12 months, the bank has delivered a total shareholder return (TSR) exceeding 75% while remaining firmly focused on building long-term value for its shareholders.

The rights issue will allow shareholders to participate in the bank's growth strategy as it scales and further enhances profitability. At the same time, ADCB reaffirms its dividend guidance of AED25 billion in distributions over the next five years - a 50% uplift over the previous 5-year period - underscoring its commitment to deliver consistent and attractive shareholder returns.

ADCB delivers outperformance
Under the leadership of the board and its management team, ADCB has significantly scaled its operations and profitability since 2020. Total assets have increased by 77% in the last five years, surpassing the AED700 billion milestone as at June 2025. In the first half of 2025, ADCB exceeded internal targets, marking its 16th consecutive quarter of profit-before-tax growth - a testament to its disciplined execution of strategy.

The rights issue will build on this momentum as the bank advances its ambitious strategy to double net profit to AED20 billion within five years, while delivering an annual return on equity above 15% each year.

Trade Arabia