Abu Dhabi Islamic Bank (ADIB) has set out key dates for its rights issue.
This follows ADIB’s Extraordinary General Meeting held on 28thJune 2015 which approved ADIB’s capital increase by way of a rights issue of 168 million new shares to raise AED 504 million of new shareholders equity.
The rights issue has been proposed to support ADIB’s continued growth. ADIB reported a net profit of AED 502.6 million for the second quarter of 2015, a 10.5 percent increase from a year earlier, as the number of customers increased by 31.9% reflecting the continued strength of the main banking activities across all customer segments. ADIB expects more opportunities for expansion in the coming years, and the rights issue forms part of a capital growth plan to support them.
Under the plan for the rights issue, each existing shareholder will have the right to subscribe to 56 new shares for every 1000 shares held on 2 pm on August 13th, 2015, and subscription will start on August 23, and end on September 10, 2015.
Each right grants its holder the eligibility to subscribe to one new share at an issue price of AED 3 per share, reflecting the nominal value of AED 1 per share, and a share premium of AED 2 per share. Shareholders will have the option of selling and buying their rights during the trading period through the Abu Dhabi Securities Exchange between August16 and September 3.
Shareholders wishing to exercise their right of buying new shares will need to subscribe by filling in a form that can be downloaded from ADIB’s website, rightsissue.adib.aeor through ADIB’s mobile app, and then delivering it to one of the participating ADIB branches. An investor number will be needed for this.
ADIB will act as the receiving bank and oversee the subscription process, and shareholders can visit any of 40 ADIB branches which have been designated to receive subscriptions across the country to exercise their rights in subscribing to new shares. A list of designated branches can also be viewed on ADIB’s website.