United Arab Bank has announced the successful completion of its capital increase, which ended on 7 March 2018, to increase the Bank's capital for an amountof AED 687.5 million to add on the Bank's issued capital of AED 1.375 billion.
The Rights Issue will be in the form of 687,516,883 newly issued Shares, with new shares priced at AED 1 per share, and which would increase the Bank's issued share capital to AED 2.063 billion.
The Rights Issue has been oversubscribed with the Bank receiving total subscriptions of AED 850m which represent 124 per cent of the original amount being made available for subscription. The bank is currently completing the process of increasing the capital and is seeking to obtain all required approvals in coordination with the Securities and Commodities Authority.
“The oversubscription of the Rights Issue reflects the confidence that our shareholders have in the Bank and its future endeavours. Our revised business model which is backed by the strong economy in the UAE positions us well to deliver sustainable returns for our shareholders going forward,” said Sheikh Mohammed bin Abdulla Al Nuaimi, Acting Chief Executive Officer.
UAB reported a Net Profit of AED17m in 2017 as the successful execution of its Transformation Strategy paved the way for a return to profitability. The Bank has substantially strengthened its Balance Sheet, focused on core activities, de-risked the business and captured material cost savings.