Abu Dhabi Islamic Bank (ADIB) has confirmed a rights issue plan designed to raise Dh1.75 billion, in a move that will boost the bank's capital base ahead of further regional growth plans. The offer involves more than 106,383,000 new ordinary shares priced at Dh16.45 each, made up of Dh1 nominal value plus a Dh15.45 premium, representing a discount of roughly 28.8 per cent to the prevailing market price.
As a result, ADIB's issued share capital will rise from Dh3.632 billion to Dh3.738 billion. Existing shareholders will be entitled to one right for every 34.14 shares they currently hold, giving them the opportunity to maintain their proportional stake in the bank.
The bank has laid out a detailed timetable for the process. Investors wishing to qualify for the rights must purchase shares by October 29, with November 2 set as the eligibility record date. Rights will then trade on the Abu Dhabi Securities Exchange between November 4 and 16, followed by a subscription window running from November 10 to 24. Trading of the newly issued shares is expected to begin on December 18.
Mohamed Abdelbary, ADIB's Group Chief Executive Officer, described the rights issue as part of the bank's strategy to strengthen its capital position. The move comes amid a broader trend among UAE banks reinforcing their balance sheets this year. Shareholders are now being urged to track the key dates closely if they intend to take part in the subscription.