First Abu Dhabi Bank Plans Dh15 Billion Rights Issue at a 30% Discount

The subscription price is 30% below the stock's closing price on Tuesday, Reuters reported. Al Khaleej newspaper said the offer would raise the bank's share capital by 10%. Mubadala, the Abu Dhabi sovereign investor that holds 37.9% of FAB, plans to subscribe for its full pro-rata entitlement, the bank said. If the issue is fully taken up, that commitment would account for roughly Dh5.7 billion of the total.

The raising is large by regional standards. It is about two and a half times the Dh6.1 billion rights issue that Abu Dhabi Commercial Bank, also backed by Mubadala, completed in December 2025. It gives FAB fresh equity to support lending at a time when the UAE's banking sector has kept growing despite the regional war and disruption to shipping through the Strait of Hormuz.

FAB said in a statement that the issue "will provide additional capacity to support FAB's next phase of growth in the UAE and across the Group's global franchise." The details published on Wednesday did not include a breakdown of how the money will be used, a subscription timetable or a date for a shareholder vote.

Rights issues give existing shareholders the first claim on new shares in proportion to their holdings. A deep discount makes taking up the rights more attractive and protects the offer if the share price falls while it is open. Investors who do not take up their rights see their stakes diluted.

The ADCB deal is the closest local comparison. Mubadala, ADCB's majority shareholder, took its full allocation as an anchor, and the bank said it received funded commitments of more than Dh12 billion from UAE, regional and international investors. Shareholders bid for more than three times the remaining shares, according to TradeArabia. ADCB chief executive Ala'a Eraiqat linked that raising to what he called an "ambitious phase of technology-driven growth."

FAB's shareholders still need to see the full terms, including the subscription dates and any approvals needed before the new shares can be issued.