United Arab Bank Proposes Rights Issue To Raise Up To AED 1.03 Billion For Growth Strategy

United Arab Bank PJSC (UAB), listed on the Abu Dhabi Securities Exchange (ADX), has announced plans to increase its issued share capital. The bank aims to raise up to AED1,031,275,325 from AED2,062,550,649 to AED3,093,825,974 through a Rights Issue. This offer is available to existing shareholders.

The new shares will be priced at AED1 each. UAB's General Assembly approved this plan on 6th March 2025 after the Board of Directors' approval on 4th February 2025. All necessary regulatory approvals have been secured for this transaction.

Eligible shareholders and those who purchase rights during the trading period can subscribe for new shares at the set price. The subscription period starts on 4th July 2025 and ends on 17th July 2025.

The allocation of new shares to eligible subscribers will occur on 24th July 2025. Those who do not receive their full subscription will get refunds around the same date.

Shirish Bhide, CEO of United Arab Bank, stated: "The Rights Issue represents a significant milestone in the Bank’s journey towards its next phase of growth. It is an important step in strengthening United Arab Bank’s capital position and reinforces our long-term commitment to sustainable growth. The additional capital will support the implementation of our growth strategy, enhance our financial resilience, and create long-term value for our shareholders while continuing to serve the UAE economy and contribute to its development agenda."

Purpose and Management of Funds

The funds raised from this Rights Issue are intended to bolster UAB's capital base and support future business expansion. This move aligns with the bank's strategy for sustainable growth and financial stability.

First Abu Dhabi Bank PJSC has been appointed as Lead Manager and Bookrunner for this Rights Issue. Al Tamimi & Co. serves as Legal Adviser for the process.

With inputs from WAM