Abu Dhabi Islamic Bank (ADIB), a leading financial institution, will open the subscription for shareholders and rights holders who want to subscribe to ADIB new shares on Tuesday September 25th until 9th of October, both days inclusive. ADIB received approval from its shareholders on August 19th to raise AED 1 billion through a rights issue to support the bank's continued growth and its objectives in achieving its 2020 vision, while meeting regulatory requirements.
ADIB's rights are currently being traded on the Abu Dhabi Securities (ADX) until October 2nd. This provides the opportunity for shareholders who do not wish to subscribe to the new shares to sell all or part of their rights, and for interested potential shareholders or investors to buy rights and then subscribe to the new shares.
The rights issue will increase ADIB's share capital from AED 3,168,000,000 to AED 3,632,000,000. ADIB will act as the sole receiving bank and oversee the subscription process.
ADIB's capital raise plans will allow the bank to focus on expanding its retail business and providing market-leading digital banking services, while capturing opportunities across corporate, transaction and correspondent banking. ADIB reported a 3 percent increase in net profit for the first half of 2018, which reached AED 1.16 billion. Group revenues continued to grow, while the bank maintained a disciplined approach to cost and risk management. The bank paid a dividend of 28.87 percent of share capital for 2017, representing 39.76 percent of full year net profits.
On September 15, ADIB announced that it had successfully raised US$750 million of additional Tier 1 through a perpetual sukuk that complies with the Basel III regulatory framework issued by the Central Bank of the UAE. The issue, priced at a profit rate of 7.125 percent, was three times oversubscribed, accumulating USD 2.1 billion in orders.
Shareholders wishing to exercise their rights can obtain details on the subscription process by visiting www.adib.ae/rightsissue.