ADX hosts briefing for brokers on ADIB rights issue

ABU DHABI, 16th August, 2015 (WAM) -- Abu Dhabi Securities Exchange, ADX, recently hosted a briefing session by the Abu Dhabi Islamic Bank, ADIB, for many of the UAE?s leading brokers in support of the launch of trading of the rights issue for ADIB.

Abu Dhabi Islamic Bank rights started trading on the Abu Dhabi Securities Exchange today, which marks the first time rights issued by a UAE bank trade on a public exchange. The issue of 168 million new shares, approved by ADIB shareholders in June, will raise AED504 million to support the bank?s growth.

The session covered how the rights issue process will work and how brokers can best advise their clients to exercise their rights.

Rashed Al Balooshi, CEO of ADX, said, "This is an important moment for the market and we welcome the decision by ADIB to initiate a rights issue as part of their capital raising programme. A rights issue can provide a unique way for companies to increase liquidity and secure long-term funding without the need for further leverage. ADX is ready and willing to work alongside companies to make rights issues a more regularly deployed option in the future."In line with the timetable announced on the ADX website last month, all investors holding ADIB shares as at 14:00 hrs. on Thursday, 13th August will be entitled to receive rights to subscribe to new shares issued by the bank, or to trade them.

The rights will be tradable on ADX between August 16th and September 3rd. This window allows existing shareholders who do not wish to subscribe to the new shares to sell all or part of their rights, and for interested potential shareholders to buy rights and then subscribe to the new shares.