ADCB's Board Approves AED 6.1 Billion Rights Issue To Boost Organic Growth And Shareholder Value

The Board of Directors at Abu Dhabi Commercial Bank PJSC (ADCB) has sanctioned a strategic rights issue to raise up to AED 6.1 billion. This move is aimed at boosting the Bank's organic growth and providing long-term value for shareholders. The rights issue allows shareholders to subscribe for new shares, aligning with the Bank’s goal of delivering strong and sustainable returns.

ADCB plans to increase its issued capital from AED 7,319,947,010 to AED 7,912,175,710 by issuing up to 592,228,700 new shares. These shares will be priced at AED 10.3 each, comprising a nominal value of AED 1.00 and a share premium of AED 9.3. This price represents a 30% discount compared to ADCB’s closing share price on the Abu Dhabi Securities Exchange as of 4 September 2025.

Mubadala Investment Company PJSC, ADCB's majority shareholder, has expressed full support for the Board's recommendation to approve the capital increase through rights issuance. Mubadala is committed to subscribing fully for its proportional entitlement of the offered shares, demonstrating its backing of ADCB’s future goals.

Over the past year, ADCB has achieved a total shareholder return exceeding 75%. The rights issue offers shareholders a chance to engage in the Bank’s growth strategy as it enhances profitability. ADCB also maintains its dividend guidance of approximately AED 25 billion over the next five years, marking a 50% increase from the previous period.

Since 2020, under its current leadership, ADCB has significantly expanded operations and profitability. Total assets have grown by 77% over five years, surpassing AED 700 billion by June 2025. In early 2025 alone, ADCB exceeded internal targets with its 16th consecutive quarter of profit-before-tax growth.

The rights issue aims to build on this momentum as ADCB pursues an ambitious strategy to double net profit to AED 20 billion within five years while maintaining an annual return on equity above 15%. This initiative aligns with ADCB's disciplined approach towards accelerated growth.

Regulatory Compliance and Capital Buffers

Recognising ADCB’s rapid growth and status among major financial institutions in the country, higher capital buffers have been introduced for it as a Domestic Systemically Important Bank (D-SIB). The capital increase will enhance ADCB’s Common Equity Tier 1 ratio (CET1) and Capital Adequacy Ratio (CAR) by approximately 120 basis points upon completion of the rights issue.

A General Assembly meeting is scheduled for shareholders on 13 October 2025 to vote on this proposed rights issue. The meeting is contingent upon regulatory approvals from authorities such as the Central Bank of the UAE and the Securities and Commodities Authority (SCA). Following these approvals, ADCB will announce detailed terms and timelines for the rights issue.

With inputs from WAM