Abu Dhabi - Mubasher: Abu Dhabi Islamic Bank (ADIB) announced on Monday that it has successfully raised AED 504 million in the first tradable rights issue for a bank in the UAE.

“The rights issue, which forms part of the comprehensive capital plan to support ADIB’s strong growth trajectory, was nearly [three] times oversubscribed with AED 1.46 billion received,” ADIB revealed in a statement.

After closing subscription on 10  September, all of 168 million shares had been fully subscribed. The rights, which were traded on the Abu Dhabi Securities Exchange (ADX), presented an opportunity to existing shareholders and investors who bought rights to buy ADIB shares at AED 3 per share.

The bank’s rights issue has been “a resounding success” thanks to support from our shareholders, said ADIB Group CEO Tirad Al Mahmoud, adding that the Abu Dhabi-based bank is currently working on enhancing its capital to support its growth strategy.

“[ADIB] is pleased to have promoted the further development of the UAE capital markets by proving that secondary equity offerings can draw strong investor interest. With our strong and diverse capital base, we now are focused on continued expansion and delivering the superior returns our shareholders and capital market investors have come to expect from [the bank],” the CEO added.