Abu Dhabi, UAE — Abu Dhabi Commercial Bank (ADCB) has announced a strategic rights issue to raise up to AED 6.1 billion ($1.66 bn).
The rights issue will increase ADCB’s issued capital from AED 7.32 billion to AED 7.91 billion by issuing up to 592.2 million new shares. The new shares will be priced at AED 10.3 each, a 30% discount to ADCB’s closing share price on September 4, 2025.
The move, approved by the bank’s Board of Directors, is designed to accelerate organic growth and create long-term value for shareholders.
The capital increase will allow shareholders to subscribe to new shares, giving them a chance to participate in the bank’s continued success. The funds will enhance ADCB’s capacity for asset growth and help it stay ahead of evolving regulatory requirements.
Mubadala Investment Company, ADCB’s majority shareholder, has committed to subscribing to its full proportional entitlement, signaling strong support for the bank’s future ambitions.
Focus on growth and shareholder returns
ADCB has seen a total shareholder return of over 75% in the last 12 months. The bank reaffirmed its dividend guidance, projecting distributions of approximately AED 25 billion over the next five years—a 50% increase from the previous five-year period.
Since 2020, ADCB has significantly scaled its operations, with total assets increasing by 77% over the last five years to surpass AED 700 billion as of June 2025. The bank has also achieved 16 consecutive quarters of profit-before-tax growth.
The capital raise is part of ADCB’s ambitious strategy to double its net profit to AED 20 billion within five years while delivering an annual return on equity above 15% each year.
Regulatory compliance and future outlook
The capital increase will help ADCB comply with stricter capital requirements for Domestic Systemically Important Banks (D-SIBs), a designation recently introduced for the bank. Upon completion of the rights issue, ADCB’s Common Equity Tier 1 (CET1) and Capital Adequacy Ratio (CAR) are expected to increase by approximately 120 basis points, positioning the bank well ahead of new regulatory standards.
The rights issue is subject to shareholder and regulatory approval. A General Assembly meeting for shareholders to vote on the proposal is scheduled for October 13, 2025.
