Abu Dhabi – Mubasher: Abu Dhabi Islamic Bank (ADIB) on Wednesday announced that it has successfully raised AED 1 billion through a rights issue for increasing its capital.

The step comes along with the lender’s growth strategy, according to the bank’s statement.

ADIB said that the offering was approximately five times oversubscribed.

By the end of the subscription period on 9 October, the 464 million shares offered for subscription were covered, while the final allocation of shares would be announced on 16 October.

“This capital raise viewed in conjunction with the recent raising of $750 million in Additional Tier 1 securities has resulted in the bank improving its capital structure and has positioned the bank to pursue growth opportunities in line with the expected improvements in the economic environment,” Khamis Buharoon, ADIB’s Vice chairman and acting CEO, said.

ADIB’s new shares were 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.

Earlier in October, the bank announced that it would offer its AED 1 billion rights issue plan through digital channels.

By the end of Wednesday’s session, ADIB’s stock plunged 0.27% at AED 3.65.