FAB Puts AED 15 Billion Rights Issue to December 7 Shareholder Vote

The general assembly is set for 3pm on Monday, December 7, on the 4th floor of FAB's headquarters in the Al Qurm district of Abu Dhabi, according to the bank's notice of the meeting. Shareholders can also attend online through a link sent by SMS or email once they register.

Eligible shareholders would receive one right for every 9.958 shares held on the eligibility date, with fractions rounded down. Each right entitles its holder to subscribe for one new share. Issued share capital would rise from AED 11,047,612,688 to up to AED 12,157,080,144, and shareholders will also vote on amending Article 6 of the bank's Articles of Association to reflect the change.

Of the AED 13.52 price, AED 1 is nominal value and AED 12.52 is share premium. The bank put the total premium at up to AED 13,890,532,549, which will be added to the statutory reserve under Article 198 of Federal Decree by Law Number 32 of 2021 Concerning Commercial Companies.

The board is also seeking authority to accept whatever amount rights holders subscribe for without offering any remaining shares to the public. A further resolution would let the Chairman, or a person he authorises, set the terms of the issue and the subscription period and decide the final number of shares. The final size of the capital increase will be fixed when the subscription period closes and after the Capital Market Authority approves it.

The capital increase needs a special resolution, which requires the votes of holders of at least three quarters of the shares present or represented at the meeting. The meeting is valid only if shareholders holding or representing at least 50% of the share capital attend. If that quorum is not reached, a second meeting will be held at the same place and time on Monday, December 14, and will be valid if at least one shareholder attends.

Shareholders on the register on Friday, December 4, may attend and vote. For a second meeting, the record date is Friday, December 11. On the Capital Market Authority's instructions, shareholders and proxy holders attending online must register electronically to vote. Registration opens at 3pm on December 6 and closes at 3pm on December 7.

The notice does not give the eligibility date or the subscription timetable.