Abu Dhabi Commercial Bank (ADCB) has approved a strategic rights issue worth up to AED 6.1 billion, designed to accelerate its organic growth plans and reinforce long-term value creation for investors.
Strengthening Capital and Shareholder Participation
The initiative will allow shareholders to subscribe to new shares, offering direct participation in the bank’s growth trajectory. The rights issue is expected to increase ADCB’s issued capital from AED 7.32 billion to AED 7.91 billion through the issuance of nearly 592.2 million new shares. These will be priced at AED 10.3 per share, including a nominal value of AED 1.00 and a premium of AED 9.3, representing a 30 percent discount on the 4 September closing price on the Abu Dhabi Securities Exchange.
Mubadala Investment Company, ADCB’s largest shareholder, confirmed its full backing for the plan. The firm pledged to subscribe in full to its proportional share entitlement, underlining confidence in the bank’s long-term strategy.
Sustained Growth and Shareholder Returns
Over the last year, ADCB delivered a total shareholder return above 75 percent, reinforcing its commitment to creating enduring value. The bank also reaffirmed dividend guidance of approximately AED 25 billion over the next five years, a 50 percent increase compared to the previous five-year cycle.
The bank’s performance has been consistent, with total assets rising 77 percent since 2020 to surpass AED 700 billion in June 2025. In the first half of this year alone, ADCB marked its 16th consecutive quarter of pre-tax profit growth, reflecting strong execution of its strategy. With this rights issue, ADCB aims to double its net profit to AED 20 billion within five years while maintaining annual returns on equity above 15 percent.
Preparing for Regulatory Demands
In recognition of its size and importance within the financial system, ADCB has been designated as a Domestic Systemically Important Bank (D-SIB). As a result, higher capital buffers were introduced. Upon completion of the rights issue, the bank’s Common Equity Tier 1 ratio and Capital Adequacy Ratio are expected to rise by about 120 basis points, keeping ADCB ahead of new regulatory requirements while sustaining its expansion.
The General Assembly meeting for shareholders to approve the rights issue is scheduled for 13 October 2025. The final terms and timeline, including the ex-rights date and subscription window, will be announced following regulatory clearances from the Central Bank of the UAE, the Securities and Commodities Authority (SCA), and shareholder approval.
