The Abu Dhabi-listed United Arab Bank has successfully completed a capital increase through a rights issue that concluded on July 29. The initiative raised 1.03 billion dirhams, boosting the bank’s issued capital from 2.06 billion dirhams to 3.09 billion dirhams. New shares were issued at a subscription price of 1 dirham each. The bank has received all the necessary regulatory approvals to finalize this operation.
The rights issue was met with substantial demand, reflecting the bank’s robust performance and the successful execution of its transformation strategy. The United Arab Bank plans to use the net proceeds from the rights issue to fortify its capital base and support future business growth.
Sheikh Mohammed bin Faisal bin Sultan Al Qasimi, the Chairman of the United Arab Bank, stated, “The strong response we received enhances our balance sheet and marks the beginning of a new chapter in the bank’s progress. It reaffirms our commitment to delivering added value to our shareholders. The success of this subscription will strengthen the bank’s financial flexibility and reinforce our ability to continue supporting the UAE’s economy and its sustainable development agenda.”
Shirish Padhi, the bank’s CEO, commented, “The success of the rights issue showcases the support we have from our shareholders and their confidence in our future plans.”
This strategic move is a crucial milestone in strengthening the capital position of the United Arab Bank and underscores its ongoing commitment to sustainable growth. The additional capital will support the next phase of the growth strategy, ensuring readiness to adapt to evolving regulatory requirements, meet customer needs, and achieve sustainable returns for shareholders.
In the first half of the year, the bank reported a net profit of 208 million dirhams, compared to 139 million dirhams during the same period last year, indicating a significant year-on-year increase of 50%.