ADCB approves rights issue to raise Dhs6.1 billion to accelerate organic growth

The Board of Directors of Abu Dhabi Commercial Bank PJSC (ADCB or the Bank) has approved a strategic rights issue to raise up to Dhs 6.1 billion. This initiative marks a decisive step to accelerate the pace of the Bank’s strong organic growth and deliver substantial long-term value for shareholders.

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 returns.

The proposed rights issue will increase ADCB’s issued capital from Dhs 7,319,947,010 up to Dhs 7,912,175,710 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 Dhs 10.3 per new share, reflecting the nominal value of Dhs 1.00 per new share and a share premium of Dhs 9.3 per new share. This represents a discount of 30% to the closing share price of ADCB’s shares on the Abu Dhabi Securities Exchange as of 4 September 2025.

Mubadala Investment Company PJSC, the majority shareholder in ADCB, has confirmed its full support for the Board of Director’s 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 shares, which is a testament to Mubadala’s support of the Bank’s future ambitions.

Over the past 12 months, the Bank has delivered a total shareholder return (TSR) exceeding 75% 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 reaffirms its dividend guidance of c. Dhs 25 billion in distributions over the next five years – a 50% uplift over the previous 5-year period – underscoring its commitment to deliver consistent and attractive shareholder returns.

Under the leadership of the Board and its management team, ADCB has significantly scaled its operations and profitability since 2020. Total assets have increased by 77% in the last five years, surpassing the Dhs 700 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 Dhs 20 billion within five years, while delivering an annual return on equity above 15% 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 c.120 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 13 October 2025, 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.

WAM