Abu Dhabi Commercial Bank To Raise Dh6.1 Billion In Rights Issue

Abu Dhabi Commercial Bank on Monday announced a strategic rights issue to raise up to Dh6.1 billion.

The proposed issue aims to increase ADCB's issued capital from Dh7,319,947,010 up to Dh7,912,175,710 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 Dh10.3 per new share, reflecting the nominal value of Dh1.00 per new share and a share premium of Dh9.3 per new share. This represents a discount of 30 per cent to the closing share price of ADCB's shares on the Abu Dhabi Securities Exchange as of September 4, 2025.

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 return, ADCB said in a statement.

Mubadala Investment Company PJSC, the majority shareholder in ADCB, has confirmed its full support for the Board of Directors' 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 share.

Over the past 12 months, the bank has delivered a total shareholder return (TSR) exceeding 75 per cent 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 reaffirmed its dividend guidance of Dh25 billion in distributions over the next five years – a 50 per cent uplift over the previous five-year period.

ADCB has significantly scaled its operations and profitability since 2020. Total assets have increased by 77 per cent in the last five years, surpassing the Dh700 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 Dh20 billion within five years, while delivering an annual return on equity above 15 per cent each year.

In recognition of the bank's rapid growth and stature among the country's largest financial institutions, higher capital buffers have recently been introduced for ADCB as a Domestic Systemically Important Bank (D-SIB). The increase in the Bank's capital will uplift the Common Equity Tier 1 ratio (CET1) and Capital Adequacy Ratio (CAR) by 20 bps upon completion of the rights issue, positioning ADCB well ahead of the new requirements, while continuing to pursue accelerated growth in a disciplined manner.

The General Assembly meeting for shareholders to vote on the proposed rights issue will be held on October 13, subject to regulatory approvals. ADCB will announce the full terms and timetable for the rights issue, including the ex-rights date and subscription period, following approval from the Central Bank of the UAE, the Securities and Commodities Authority (SCA) and shareholders.

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