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United Arab Bank PJSC (UAB), listed on the Abu Dhabi Securities Exchange (ADX) announced that it proposes to increase its issued share capital by an amount up to Dh1,031,275, from Dh2,062,550,649 up to Dh3,093,825,974 by way of the rights issue offered to the existing shareholders of the bank.

Further, UAB has published an invitation to its shareholders to subscribe for new shares. Frequently asked questions relating to the rights issue will be made available on UAB’s website (http://www.uab.ae/) on or around today's date.

The new shares will be issued at an issue price of Dh1 per new share. The terms and launch of the rights issue were approved by the UAB’s general assembly meeting held on March 6, 2025, following the approval of the board of directors of the bank held on February 4, 2025. The necessary regulatory approvals have been obtained for this transaction.

UAB intends to use the net proceeds raised from the rights issue to strengthen its capital base and to support future growth of the business of the bank.

The holders of rights, which includes shareholders of UAB and any persons who purchased rights during the rights trading period, will be entitled to exercise their rights to subscribe for new shares at the issue price commencing on July 4, 2025 and ending on July 17, 2025.

The new shares will be allocated to eligible persons on July 24, 2025. Refunds will be given to eligible persons, who did not receive the number of New Shares that they subscribed for, on or around July 24, 2025.

Shirish Bhide, CEO of United Arab Bank.

Commenting on the announcement, Shirish Bhide, CEO of United Arab Bank said the rights issue represents a significant milestone in the bank’s journey towards its next phase of growth.  “It is an important step in strengthening United Arab Bank’s capital position and reinforces our long-term commitment to sustainable growth. The additional capital will support the implementation of our growth strategy, enhance our financial resilience, and create long-term value for our shareholders while continuing to serve the UAE economy and contribute to its development agenda.”

First Abu Dhabi Bank PJSC has been appointed as lead manager and bookrunner in respect of the rights issue and Al Tamimi and Company have been appointed as legal adviser.

Expected Timetable of Principal Events

> Date of publication of the Invitation|: 3 June

> Eligibility Date of Rights (record date)*: 19 June

> First day of trading the Rights on the ADX: 27 June

> Last day of trading the Rights on the ADX: 10 July

> Subscription Opening Date: 4 July

> Subscription Closing Date: 17 July

> Date of allocation: 24 July

> Refund date: On or around 24 July

> Commencement of dealings in the new shares: On or around 30 July 

* In order to receive rights on the eligibility date, investors must ensure that they execute any purchase orders for shares at least two business days prior to the eligibility date, i.e. on or before June 17, 2025, to allow for the settlement of trades on the ADX (which operates on a T+2 basis).