Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Abu Dhabi Commercial Bank (ADCB) has announced a rights issue worth Dh6.1 billion, giving its existing shareholders the opportunity to purchase additional shares at a discounted price and strengthen their stake in the bank. The move, approved by shareholders and regulators, aims to boost ADCB’s capital base and support its continued growth in lending and investment.
Under the plan, ADCB will increase its share capital by Dh592.2 million, from Dh7.32 billion to Dh7.91 billion, through the issuance of 592.2 million new ordinary shares priced at Dh10.30 per share—a 30% discount to ADCB’s share price on the Abu Dhabi Securities Exchange (ADX) as of September 4, 2025. ADCB shares are trading between Dh14.60 to Dh14.80 when the market opened on Monday. ADCB first announced its decision to increase its share capital by way of issuing rights on September 8.
The prospectus, posted on the ADX website on Monday, explains that every shareholder holding ADCB shares as of November 7, 2025—the “Eligibility Date”—will receive one tradable right for every 12.36 shares they own. These rights can be used to subscribe for new shares at the discounted issue price, or they can be sold on the ADX if the shareholder prefers not to participate.
Trading in these rights will begin on November 10, 2025 and end on November 24, 2025, after which they can no longer be traded or transferred. Once the trading period closes, the subscription window will open on November 18, 2025, giving shareholders and investors who have purchased rights the chance to buy the new shares at Dh10.30 each. This period will close on December 4, 2025, the prospectus shows.
Explaining how the process works, ADCB said that rights holders have two choices: they can either exercise their rights by paying for the new shares or sell their rights on the market. If they neither sell nor exercise their rights, the rights will expire with no value, and their ownership percentage in the bank will dilute, even though the number of shares they hold remains unchanged.
Investors who wish to buy more than their entitlement can also apply for additional shares, which will be allocated if there are unsubscribed shares left over after the initial round. These will be distributed on a pro-rata basis among those who request extra shares, though the bank cautioned that allocation of additional shares is not guaranteed.
Mubadala Investment Company, ADCB’s largest shareholder, has confirmed that it will fully exercise its rights, signalling continued confidence in the bank’s strategy and long-term outlook.
Following the close of subscriptions, ADCB expects to allocate new shares by December 11, 2025, process refunds around December 18, and begin trading the new shares on the ADX on or around December 26, 2025.
The rights issue, ADCB explained, will help the bank “strengthen capital ratios, invest further in business growth, and support lending expansion.” For shareholders, it presents a choice: they can buy more shares at a reduced price or sell their rights for a profit on the market. But those who do neither, the bank warned, “will lose the value of their rights” once the subscription period ends.
In simpler terms, the rights issue gives every existing shareholder a short-term opportunity to buy extra ADCB shares at a discount. Acting within the given dates is crucial—otherwise, the right lapses and the investor’s ownership proportion shrinks as new shares are added to the market.
