On Monday, Abu Dhabi Commercial Bank revealed plans for a strategic rights issue, aiming to raise up to Dh6.1 billion.
This initiative seeks to boost ADCB’s issued capital from Dh7,319,947,010 to Dh7,912,175,710 by issuing up to 592,228,700 new shares. Subject to all necessary regulatory and shareholder approvals, these shares will be priced at Dh10.3 each, comprising a nominal value of Dh1.00 and a premium of Dh9.3 per share. This price represents a 30% discount compared to ADCB’s closing share price on the Abu Dhabi Securities Exchange as of September 4, 2025.
The rights issue offers shareholders a chance to invest in the bank’s ongoing success by subscribing to new shares. According to ADCB, “This strategic move benefits both the Bank and its shareholders by enhancing our capacity for significant asset growth, staying ahead of regulatory requirements, and focusing on delivering strong, sustainable returns.”
Mubadala Investment Company PJSC, ADCB’s majority shareholder, has pledged full support for the Board of Directors’ proposal to the General Assembly to approve the capital increase via rights issuance, and commits to subscribing in full for its proportional share of the new offering.
In the past year, the bank has achieved a total shareholder return (TSR) exceeding 75%, while focusing on long-term value creation. The rights issue will enable shareholders to partake in ADCB’s growth strategy, enhancing profitability. Additionally, ADCB has reaffirmed its dividend guidance of Dh25 billion over the next five years, a 50% increase from the previous period.
Since 2020, ADCB has expanded its operations and profitability significantly, with total assets growing by 77% over five years, surpassing Dh700 billion as of June 2025. In the first half of 2025, ADCB exceeded its internal targets, marking the 16th consecutive quarter of profit-before-tax growth, showcasing its strategic discipline. The rights issue will capitalize on this momentum, aiming to double net profit to Dh20 billion in five years, with an annual return on equity exceeding 15% each year.
Recognizing the bank’s rapid growth and status as a leading financial institution, new capital buffers have been set for ADCB as a Domestic Systemically Important Bank (D-SIB). The capital increase will enhance the Common Equity Tier 1 ratio (CET1) and Capital Adequacy Ratio (CAR) by 20 bps post-rights issue, positioning ADCB ahead of new regulatory requirements while pursuing disciplined growth.
The General Assembly meeting for shareholder voting on the rights issue is scheduled for October 13, pending regulatory approvals. ADCB will announce the full terms and timeline for the rights issue, including the ex-rights date and subscription period, following clearance from the Central Bank of the UAE, the Securities and Commodities Authority (SCA), and shareholders.
