First Abu Dhabi Bank (FAB) has said its board had approved a proposed rights issue to raise up to AED15 billion ($4.08 billion), as the UAE’s largest bank seeks to fund its next phase of growth at home and abroad.
The issue, which remains subject to shareholder and regulatory approvals, would involve the sale of 1,109,467,456 new shares at AED13.52 ($3.68) each, FAB said in a statement.
The offer price represents a 30% discount to FAB’s closing share price on the Abu Dhabi Securities Exchange on Nov. 10. Eligible shareholders will be able to subscribe on a pro-rata basis, allowing them to maintain their existing ownership stakes.
FAB said the capital raise would support growth in the UAE and across its international network, while preserving its capital strength, liquidity and financial flexibility. It also aims to help the bank deepen client relationships and invest in strategic capabilities, including technology and artificial intelligence.
Mubadala Investment Company, FAB’s largest shareholder, said it intends to subscribe for its full pro-rata entitlement.
FAB will seek shareholder approval at a general assembly meeting scheduled for Dec. 7, subject to regulatory approvals. It expects to announce final terms and a timetable, including the ex-rights date and subscription period, after those approvals.
The transaction is expected to be completed in the first quarter of 2027.
FAB will act as lead manager, bookrunner and sole receiving bank for the issue. J.P. Morgan is serving as financial adviser, while Allen Overy Shearman Sterling is legal adviser.
FAB said its total assets have risen by more than 50% since 2020 to AED1.4 trillion ($381 billion), while net income has doubled to AED21.1 billion ($5.74 billion). Return on tangible equity rose 6.2 percentage points to 19.2%.
Between 2020 and 2025, the bank distributed AED44 billion ($11.98 billion) in cash dividends to shareholders, representing nearly 20% of all cash dividends on the Abu Dhabi exchange.
Under its medium-term framework for 2026-2031, FAB is targeting annual loan and revenue growth of 10-15%, return on tangible equity above 17% throughout the economic cycle, and cumulative dividends exceeding AED50 billion ($13.61 billion).
