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Wed 10 Oct 2018 06:37 PM

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Abu Dhabi bank says $272m rights issue five times oversubscribed

Abu Dhabi Islamic Bank successfully raises $272m aimed at supporting its growth strategy

Abu Dhabi bank says $272m rights issue five times oversubscribed
Abu Dhabi Islamic Bank.

Abu Dhabi Islamic Bank (ADIB) has successfully raised AED1 billion ($272 million) through a rights issue aimed at supporting the bank’s growth strategy.

The offer for new shares was approximately five times oversubscribed, the bank said in a statement.

Following the close of the subscription period on October 9, the designated 464 million new shares will be fully allocated on October 16, it added.

Subscription for the AED1 billion ADIB Rights Issue generated investor demand in excess of AED5 billion, the statement said.

The rights, which were traded on the Abu Dhabi Securities Exchange, offered existing shareholders and other investors the opportunity to purchase shares at a price of AED2.16 per share.

Khamis Buharoon, ADIB vice chairman and acting CEO, said: “This capital raise viewed in conjunction with the recent raising of $750 million in Additional Tier 1 securities has resulted in the bank improving its capital structure and has positioned the bank to pursue growth opportunities in line with the expected improvements in the economic environment.

"Shareholders have clearly acknowledged their support for the bank’s growth potential as demonstrated by the strong demand for new shares. The bank is investing in delivering excellent service through digital channels and our branches and we will continue to support the ambitions of our customers and the UAE economy.”

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