ADCB approves Dh6.1 billion rights issue to fund growth plans

Dubai: Abu Dhabi Commercial Bank (ADCB) will raise up to Dh6.1 billion through a rights issue, after its Board of Directors approved the capital increase to support expansion and strengthen the lender’s balance sheet.

The planned issue will increase ADCB’s capital from Dh7.32 billion to Dh7.91 billion by offering up to 592.2 million new shares. Shares will be priced at Dh10.3 each, including a nominal value of Dh1.00 and a share premium of Dh9.3. The pricing represents a 30% discount to ADCB’s closing price on the Abu Dhabi Securities Exchange as of September 4, 2025.

Mubadala Investment Company, ADCB’s majority shareholder, confirmed it will fully subscribe to its entitlement, signalling strong backing for the bank’s growth strategy.

ADCB said the move will provide capacity for asset growth while keeping ahead of new capital requirements. The bank aims to double net profit to Dh20 billion within five years, with a targeted annual return on equity above 15%.

The lender has reported strong momentum:

The bank reiterated its dividend guidance of Dh25 billion in payouts over the next five years, a 50% increase compared to the previous period.

The rights issue will boost ADCB’s Common Equity Tier 1 ratio and Capital Adequacy Ratio by about 120 basis points, keeping it comfortably above requirements set for Domestic Systemically Important Banks (D-SIBs).

A General Assembly meeting to approve the issue is scheduled for October 13, 2025. The full timetable, including subscription dates, will be disclosed after regulatory approvals from the Central Bank of the UAE and the Securities and Commodities Authority.