"Abu Dhabi Commercial" Announces the success of the rights issue worth 6.1 billion dirhams
ABU DHABI, December 10, 2017 (WAM) – Abu Dhabi Commercial Bank announced today the success of the issuance of priority rights to increase capital by 6.1 billion dirhams, after the end of the subscription period on December 4 of this year.
According to a press release issued by the bank today, the issuance witnessed remarkable demand, as the total committed subscription requests exceeded 12 billion dirhams, achieving exceptional demand from investors in the UAE, the region and global markets.
Mubadala Investment Company, as the main shareholder in Abu Dhabi Commercial Bank, subscribed in its entirety to its entitled share of the new shares, confirming its continued commitment to providing basic support to the bank’s progress and contributing to the success of the subscription process.
The remaining shares witnessed subscription requests from other shareholders that exceeded the supply by three times, in an indicator that reflects the firm confidence that investors place in Abu Dhabi Commercial Bank’s strategy and its accelerated growth path.
The new unsubscribed shares will be allocated on a proportional basis to shareholders who have submitted subscription requests to obtain additional new shares, in accordance with the mechanism contained in the subscription invitation addressed to shareholders.
This strategic issuance is the largest rights issue ever undertaken by a company listed exclusively on the Abu Dhabi Securities Market.
Abu Dhabi Commercial Bank alone assumed the role of subscription manager, bookkeeper, and main receiving bank, in a move that confirms its in-depth experience in the capital markets and its ability to manage and implement major deals with high efficiency.
Alaa Erekat, Group CEO of Abu Dhabi Commercial Bank, said: “The strong demand witnessed for this issuance reflects the extent of their firm confidence in the success of our strategy and vision, while the bank continues its pivotal role in contributing to enhancing the process of economic transformation in the UAE. Today we begin a new phase of ambitious growth based on adopting the latest digital technologies, to continue achieving qualitative value for our shareholders, customers, and the national economy as a whole.”
The net proceeds of this issuance will be allocated to support the accelerated growth path of Abu Dhabi Commercial Bank’s business, and to strengthen its capital base to keep pace with upcoming regulatory requirements.
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