Abu Dhabi: United Arab Bank PJSC (UAB), listed on the Abu Dhabi Securities Exchange (ADX), has announced its proposal to increase its issued share capital by up to AED1,031,275,325. This increase will raise the capital from AED2,062,550,649 to AED3,093,825,974 through a Rights Issue offered to existing shareholders.
According to Emirates News Agency, United Arab Bank has extended an invitation to its shareholders to subscribe for New Shares. Frequently asked questions regarding the Rights Issue are expected to be available on UAB's website. The New Shares will be issued at AED1 per share. The Rights Issue terms and launch were approved during UAB's General Assembly Meeting on 6th March 2025, following the Board of Directors' approval on 4th February 2025, with all necessary regulatory approvals secured.
The bank plans to use the net proceeds from the Rights Issue to fortify its capital base and support future growth. Eligible Persons, including current shareholders and those who purchase Rights during the Rights Trading Period, can subscribe for New Shares at the Issue Price from 4th July 2025 to 17th July 2025. Allocation of New Shares will occur on 24th July 2025, with refunds given on or around this date to those who do not receive their full subscription.
Shirish Bhide, CEO of United Arab Bank, commented on the announcement, stating that the Rights Issue is a vital milestone for the bank's growth, enhancing its capital position and supporting its long-term growth strategy. This move is set to improve financial resilience and create value for shareholders, while continuing to serve the UAE economy.
First Abu Dhabi Bank PJSC has been appointed as Lead Manager and Bookrunner for the Rights Issue, with Al Tamimi and Co. serving as Legal Adviser.