Abu Dhabi Commercial Bank announced yesterday its plans to raise up to 6.1 billion dirhams (approximately $1.66 billion) through a rights issue, which resulted in a drop of its shares by as much as 7.4%.
In a statement, the bank revealed that its board of directors has recommended increasing the company’s capital by issuing 592.2 million new shares.
These new shares will be offered at a price of 10.3 dirhams each, reflecting a 30% discount compared to the closing price of 14.76 dirhams on Thursday.
Notably, the bank’s stock has surged 41.7% since the start of the year.
Trading in Abu Dhabi Commercial Bank’s shares was temporarily halted yesterday after they dipped to 14 dirhams, approaching the offering price.
Abu Dhabi Commercial Bank ranks as the third largest bank by assets in the UAE and is primarily owned by the Abu Dhabi Investment Authority.
As of the end of June, the bank’s total assets amounted to 719 billion dirhams.