United Arab Bank Announces AED1 Billion Rights Issue

Post by : Bianca Suleiman

Photo: WAM

United Arab Bank PJSC (UAB), which is listed on the Abu Dhabi Securities Exchange (ADX), has announced that it will increase its share capital by more than AED1 billion. This increase will take the Bank’s total share capital from AED2.06 billion to AED3.09 billion.

This will be done through a Rights Issue, which means that current shareholders will be given a chance to buy new shares in the bank. Each new share will be sold for AED1. Shareholders can use this chance to buy more shares during a special time, called the Rights Trading Period.

UAB has also shared an official invitation for its shareholders to subscribe to these new shares. A list of frequently asked questions (FAQs) will be available on the Bank’s official website at www.uab.ae.

The decision to launch the Rights Issue was approved earlier this year. The Bank’s General Assembly gave its approval on 6th March 2025, and before that, the Board of Directors had approved it on 4th February 2025. All needed permissions from the regulators have already been received.

The money raised from this Rights Issue will be used to make the bank stronger financially and help grow its business in the future.

People who hold the Rights – this includes current shareholders and anyone who buys the Rights during the trading period – will be able to buy new shares between 4th July 2025 and 17th July 2025.

Once the subscription period is over, the new shares will be given to the eligible people on 24th July 2025. If someone does not receive all the shares they asked for, refunds will also be given on or around the same date.

Shirish Bhide, the CEO of United Arab Bank, said, “This is a big step for UAB. It will help us grow stronger and bring more value to our shareholders. It also shows our commitment to the UAE economy.”

First Abu Dhabi Bank PJSC has been chosen to manage this share sale, and Al Tamimi & Co. has been named as the Bank’s legal adviser.