ABU DHABI (ALETIHAD)
First Abu Dhabi Bank (FAB) said its board had approved a proposed rights issue to raise up to Dh15 billion in gross proceeds by issuing 1,109,467,456 new shares at Dh13.52 each, subject to shareholder and regulatory approvals.
The subscription price represents a 30% discount to FAB’s closing share price on the Abu Dhabi Securities Exchange (ADX) on November 10, a statement from the bank said.
Eligible shareholders will be able to subscribe for new shares in proportion to their existing holdings, allowing them to maintain their ownership stakes, the statement said.
Mubadala Investment Company, FAB’s largest shareholder with a 37.9% stake, intends to subscribe for its full entitlement, FAB said.
FAB plans to seek shareholder approval at a general assembly meeting on December 7, subject to the required regulatory approvals. The bank will announce the final entitlement ratio, eligibility and ex-rights dates, rights trading period and subscription timetable after receiving the necessary approvals. It expects to complete the transaction in the first quarter of 2027.
The bank said the proceeds would support growth in the UAE and across its international operations, as well as further investment in technology and artificial intelligence.
His Highness Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi, National Security Adviser and Chairman of FAB, said: “The UAE continues to advance an ambitious long-term economic agenda, underpinned by diversification, investment, innovation and a growing role in global trade and capital flows.
FAB is at the centre of this growth, enabling strategic investment across the UAE and internationally. The proposed Rights Issue will further strengthen FAB’s ability to support the UAE’s ambitions and capture the opportunities ahead.”
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “The proposed Dh15 billion Rights Issue is a strategic step that will accelerate our next phase of growth, capture significant opportunities across the UAE and our established international network, and further advance FAB’s position as a leading global banking franchise.”
“We will deploy capital with discipline and focus, pursuing opportunities that deepen our competitive position, expand the scale and reach of our franchise, and deliver superior, sustainable returns for our shareholders,” she added.
FAB is acting as lead manager, bookrunner and sole receiving bank for the proposed issue. J.P. Morgan is the financial adviser, and Allen Overy Shearman Sterling is the legal adviser.