Key facts
- First Abu Dhabi Bank said the rights issue will provide additional capacity to support its next phase of growth in the UAE and across its global franchise.
- The bank is offering around 1.1 billion new shares at 13.52 dirhams each, a 30% discount to the November 10 closing price.
- Mubadala holds a 37.9% stake in First Abu Dhabi Bank and plans to subscribe for its full pro-rata entitlement, the bank said.
First Abu Dhabi Bank, the UAE's largest bank by assets, said on November 11 that it is looking to raise up to 15 billion dirhams ($4.08 billion) through a rights issue.
The bank is offering around 1.1 billion new shares at 13.52 dirhams per share, a 30% discount to its closing share price on November 10. Reuters calculated the dollar equivalent at $1 = 3.6724 UAE dirhams.
FAB said the deal "will provide additional capacity to support FAB's next phase of growth in the UAE and across the Group's global franchise." The statement did not give a timetable for the raise.
Sovereign wealth fund Mubadala, which holds a 37.9% stake in FAB, plans to subscribe for its full pro-rata entitlement, the bank said.