Prime Highlights:
- ADCB is set to raise Dh6.1 billion through a rights issue to support growth and strengthen its balance sheet.
- Mubadala Investment Company, the bank’s majority shareholder, will fully subscribe to its entitlement, showing strong support for ADCB’s expansion plans.
Key Facts:
- The rights issue will increase ADCB’s capital from Dh7.32 billion to Dh7.91 billion with around 592 million new shares.
- ADCB aims to double its net profit to Dh20 billion in five years and maintain a return on equity above 15%.
Key Background:
Abu Dhabi Commercial Bank (ADCB) will raise to Dh6.1 billion through a rights issue after its Board of Directors approved the plan. The move is aimed at funding the bank’s growth plans and strengthening its balance sheet, while also adding value for shareholders.
ADCB will increase its capital from Dh7.32 billion to Dh7.91 billion by issuing about 592 million new shares. Each share will be sold at Dh10.3, including a Dh1 nominal value and a Dh9.3 premium. The bid is a 30 percent deduction to the closing price of ADCB on the Abu Dhabi Securities Exchange on September 4, 2025. The majority shareholder of ADCB, Mubadala Investment Company, has affirmed its participation in full measure, which underscores the trust it has in the long-term growth strategies of the bank.
The new capital, according to ADCB, will give headroom to the growth of its assets as well as keep the bank ahead of the changing capital requirements. The lender has set an ambitious target of doubling net profit to Dh20 billion within the next five years, supported by a return on equity goal above 15 percent. The bank’s total assets have already surged by 77 percent over the past five years, crossing Dh700 billion by June 2025.
ADCB has also delivered 16 consecutive quarters of pre-tax profit growth. Shareholder returns over the past year exceeded 75 percent, and the bank has reaffirmed its dividend guidance of Dh25 billion in payouts over the next five years, a 50 percent rise compared to the previous five-year period.
It is anticipated that the rights issue will enhance the Common Equity Tier 1 ratio and Capital Adequacy Ratio by approximately 120 basis points, and leave ADCB with a healthy buffer above the level expected of Domestic Systemically Important Banks (D-SIBs).
A General Assembly meeting to finalize the approval is scheduled for October 13, 2025. The bank will disclose the full subscription timetable following regulatory clearance from the Central Bank of the UAE and the Securities and Commodities Authority.
Read also : Tahaluf’s $17.6 Billion Impact: CEO Michael Champion Highlights Growth at Saudi Business Summit
