A shareholder in First Abu Dhabi Bank (FAB), the UAE’s largest lender by assets, is offering approximately $480 million worth of shares through a secondary share sale, according to an announcement by Citi, the deal’s bookrunner.
The selling party, whose identity has not been disclosed, is offering around 113 million shares at AED 15.5 ($4.22) per share. The offering is being executed via accelerated bookbuilding, a process typically reserved for institutional investors and aimed at swiftly completing large share sales.
Strong Demand, Narrow Discount
Citi confirmed that the books were fully covered, with demand surpassing the total size of the deal. The offer price reflects a 3.7% discount to FAB’s closing price of AED 16.1 per share on the Abu Dhabi Securities Exchange as of Friday.
This transaction comes at a time when FAB continues to solidify its regional dominance and explore international expansion opportunities. The bank, which is majority-owned by the $330 billion Abu Dhabi sovereign wealth fund Mubadala, reported total assets of AED 1.31 trillion at the end of March.
Regional Expansion and Global Ambitions
FAB has shown interest in scaling beyond the Gulf region. Two years ago, the bank disclosed that it had considered a potential bid for London-listed Standard Chartered, reflecting its ambitions to position itself as a global financial powerhouse.
The latest secondary offering does not involve FAB issuing new equity or raising capital directly. Instead, it represents an opportunity for one of its existing shareholders to monetise part of their stake while maintaining investor interest in the bank’s stock.
