FAB shareholders to vote on AED15 billion rights issue

First Abu Dhabi Bank (FAB) has called a general assembly meeting for shareholders on Monday, 7 December, to vote on a proposed rights issue that could raise around AED 15 billion.

The meeting will be held at 3pm at the bank's headquarters in Al Qurm district, behind Khalifa Business Park in Abu Dhabi. Shareholders can attend in person or virtually; a link will be sent by SMS or email after they register, according to the bank's announcement.

The main item on the agenda is a special resolution to increase the bank's issued share capital by up to AED 1,109,467,456 through the issue of up to the same number of new shares at AED 13.52 each. That price consists of a nominal value of AED 1 per share and a share premium of AED 12.52.

If approved, FAB's issued share capital would rise from AED 11,047,612,688 to as much as AED 12,157,080,144. The new shares would be offered to all existing shareholders on a pro-rata basis. Each eligible shareholder would receive one right for every 9.958 shares held, with each right allowing them to subscribe for one new share. Fractional entitlements would be rounded down.

The bank said total proceeds are expected to be around AED 15 billion. This includes the capital increase of up to AED 1,109,467,456 and a share premium of up to AED 13,890,532,549, which would be added to the statutory reserve in line with UAE commercial companies law.

Shareholders will also be asked to approve a change to Article 6 of the bank's Articles of Association to reflect the new share capital, and to authorise the chairman or another authorised person to carry out the necessary steps to implement the rights issue, including setting the subscription period and final number of shares.