Strengthening The Capital Base

Abu Dhabi Islamic Bank announced the key dates for its upcoming rights issue today. Shareholders approved the massive capital increase at the General Assembly on October 6. The bank also received the required approvals from the Central Bank and Capital Market Authority. The transaction aims to raise up to Dh1.75 billion for the institution. The bank will issue up to 106,383,000 new ordinary shares through a tradable rights issue. This increases ADIB’s issued share capital from Dh3.632 billion to up to Dh3.738 billion. The capital raise strengthens ADIB’s capital base significantly. It supports the next phase of corporate growth under the ambitious Vision 2035 plan.

Understanding Shareholder Eligibility

This enables the bank to pursue its growth trajectory while maintaining financial strength. Eligible shareholders registered on November 2 will receive one right for every 34.14 existing shares. Each right entitles the holder to subscribe for one new ADIB share. The issue price sits at Dh16.45, comprising a nominal value and a share premium. This represents a 28.8 percent discount to ADIB’s closing share price on August 24. Shareholders purchasing shares must execute orders on or before October 29 to gain eligibility. This allows for the mandatory two-day ADX settlement period required for registration. Eligible shareholders may buy or sell their rights on ADX during the trading period.

Trading On The ADX

The official rights trading period runs from November 4 to November 16. Those choosing not to subscribe may sell their rights to other investors. Shareholders who do not exercise their rights will face dilution of their ownership percentage. ADIB Group Chief Executive Officer Mohamed Abdelbary expressed confidence in the move. He stated ADIB enters its next phase of growth from a position of absolute strength. ADIB will act as the Sole Receiving Bank for the entire rights issue. Eligible shareholders can access multiple subscription channels, including the ADX ePortal. Make informed financial decisions using the latest corporate economic data. Find vital business news and market analysis at The WAU.

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