ADIB’s AED 1bn rights issue subscription to close on 9 October

ADIB’s AED 1bn rights issue subscription to close on 9 October
ADIB has raised $750 million of additional Tier 1 capital
ADIB
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Mubasher: The subscription period for Abu Dhabi Islamic Bank’s (ADIB) AED 1 billion rights issue will close on 9 October, according to an official statement.

The allocation of ADIB’s new shares will be announced a week later form the closing date.

“Rights holders who are ADIB customers can subscribe for new shares through the bank’s internet banking portal and the mobile banking smartphone application, while all rights holders can subscribe by visiting one of the 46 participating ADIB branches or visit a branch of any bank that offers the UAE Funds Transfer System,” the statement said.

The UAE bank clarified that a National Investor Number must be presented for subscription in addition to other required documents.

Subscribers will be requested to finance their subscription by either debiting their ADIB account or by providing a manager’s cheque drawn on a UAE bank or transfer via the UAE Funds Transfer System.

ADIB’s new shares will be offered at a price of AED 2.16 each, reflecting a nominal value of AED 1 per share and a share premium of AED 1.16 each.

This amount represents a 45% discount to the market share price as registered on 25 July 2018.

“The final share allocations of shares will be announced on October 16. For more information on how to subscribe and the list of participating branches please visit www.adib.ae/rightsissue,” the statement noted

ADIB has raised $750 million of additional Tier 1 capital through a perpetual sukuk that complies with the Basel III regulatory framework issued by the Central Bank of the UAE.

Priced at a profit rate of 7.125%, ADIB’s rights issue was three times oversubscribed, accumulating $2.1 billion in orders.