Abu Dhabi Commercial Bank (ADCB) has approved a Dh6.1 billion ($1.66 billion) rights issue to support its ambitious growth strategy and strengthen its balance sheet. The move will see the issuance of over 592 million new shares, raising the bank’s total share capital from Dh7.3 billion to more than Dh7.9 billion.
The new shares will be priced at Dh10.3 each, representing a 30 percent discount to the September 4 closing price. ADCB said the initiative will enhance long-term shareholder value and keep the bank ahead of evolving regulatory requirements. Majority shareholder Mubadala Investment Company confirmed full support and committed to subscribing to its proportional entitlement.
The rights issue remains subject to regulatory and shareholder approvals, with a vote scheduled for October 13. ADCB’s net profit grew 11 percent in the second quarter to Dh2.5 billion, supported by strong non-interest income and higher net interest income. Total assets rose 17 percent year-on-year to Dh718.5 billion by June.
The bank also announced plans to double net profit to Dh20 billion within five years, while maintaining an annual return on equity above 15 percent. Shareholder returns have already exceeded 75 percent in the past year, with a target of Dh25 billion in dividends over the next five years — a 50 percent increase compared to the prior period.
