First Abu Dhabi Bank, the largest bank in the United Arab Emirates by assets, said on Wednesday it intends to raise up to 15 billion dirhams through a rights issue. The move is intended to provide the bank with additional capital to support its next phase of growth both within the UAE and across its global operations.
Under the planned transaction, FAB will offer approximately 1.1 billion new shares at 13.52 dirhams per share. That subscription price represents a discount of about 30% relative to the bank's closing share price on Tuesday.
The statement from the bank also confirmed that Mubadala, the sovereign wealth fund that owns a 37.9% stake in FAB, intends to subscribe for its full pro-rata entitlement under the rights issue.
Market participants will note the exact currency conversion cited by the bank: ($1 = 3.6724 UAE dirham).
Context and purpose
FAB said the proceeds will increase the bank's capacity to finance its next stage of expansion across the UAE and within its international franchise. No further details on timing or use of proceeds beyond that stated objective were provided in the announcement.
Transaction mechanics
- Size of potential raise: up to 15 billion dirhams (equivalent to $4.08 billion).
- Number of new shares offered: around 1.1 billion.
- Offer price: 13.52 dirhams per share, about 30% below the prior closing price.
- Major shareholder action: Mubadala, with a 37.9% stake, will subscribe to its full pro-rata entitlement.
- Currency reference: ($1 = 3.6724 UAE dirham).
Immediate takeaways
The rights issue is structured to invite existing shareholders to participate at a material discount to the recent market price, while ensuring the sovereign anchor investor maintains its proportional ownership by taking up its allocation.
No additional financial metrics, timetable, underwriting details, or projections were included in the bank's statement beyond the size, pricing and Mubadala's stated participation.