Abu Dhabi Islamic Bank’s (ADIB) Dh504 million ($137.2 million) rights offer is set to begin on August 23 and will go on till September 10.

This follows ADIB’s recent approval of its capital raising plan by way of a rights issue of 168 million new shares at Dh3 per share, to support the bank’s continue growth, said a statement.

ADIB reported a net profit of Dh502.6 million for the second quarter of the year, a 10.5 per cent increase from a year earlier, as the number of customers increased 31.9 per cent reflecting the continued strength of the main banking activities across all customer segments.

The bank expects more opportunities for expansion in the coming years, and the rights issue forms part of a capital growth plan to support them.

Under the plan for the rights issue, each existing shareholder will have the right to subscribe to 56 new shares for every 1,000 shares held as on August 13, said the statement.

Each right grants its holder the eligibility to subscribe to one new share at the issue price, reflecting the nominal value of Dh1 per share, and a share premium of Dh2 per share.

The shareholders will have the option of selling and buying their rights during the trading period through the Abu Dhabi Securities Exchange between August 16 and September 3.

Those who wish to exercise their right of buying new shares will need to subscribe by filling in a form that can be downloaded from ADIB’s website or through its mobile app, and then delivering it to one of the participating ADIB branches. An investor number will be needed for this.

ADIB will act as the receiving bank and oversee the subscription process, and shareholders can visit any of 40 ADIB branches which have been designated to receive subscriptions across the country to exercise their rights in subscribing to new shares, said the statement.

A list of designated branches can also be viewed on ADIB’s website, it added. - TradeArabia News Service