{"id":14951,"date":"2025-11-19T14:16:37","date_gmt":"2025-11-19T14:16:37","guid":{"rendered":"https:\/\/thndr.horizondm.com\/blogpost\/?p=14951"},"modified":"2025-11-20T09:36:19","modified_gmt":"2025-11-20T09:36:19","slug":"adib-what-to-do-with-the-tradable-rights","status":"publish","type":"post","link":"https:\/\/thndr.horizondm.com\/blogpost\/adib-what-to-do-with-the-tradable-rights\/","title":{"rendered":"ADIB: What to do with the tradable rights?"},"content":{"rendered":"<p><span style=\"font-weight: 400; font-size: 24px;\">ADIB: What to do with the tradable rights?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here is what you need to know about Abu Dhabi Islamic Bank &#8211; Egypt\u2019s capital increase and what to do with its tradable rights.<\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: 12px;\">19 November 2025<br \/>\n<\/span><span style=\"font-size: 12px;\"><b>Amr Hussein Elalfy<\/b><\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">In this note, we lay down the story behind <\/span><\/i><b><i>Abu Dhabi Islamic Bank &#8211; Egypt<\/i><\/b><i><span style=\"font-weight: 400;\">\u2019s<\/span><\/i><b><i> [ADIB]<\/i><\/b><i><span style=\"font-weight: 400;\"> EGP3bn capital increase and the different options available to you as an existing shareholder or as a prospective shareholder, whether you should sell your rights or exercise them. And here you are some dates to keep in mind:<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Rights trading:<\/i><\/b><i><span style=\"font-weight: 400;\"> From <\/span><\/i><b><i>19 November through 1 December 2025<\/i><\/b><i><span style=\"font-weight: 400;\">, after which they will expire. Thus, you need to make up your mind during that period.<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>Subscription to the capital increase:<\/i><\/b><i><span style=\"font-weight: 400;\"> From <\/span><\/i><b><i>19 November through 4 December 2025 <\/i><\/b><i><span style=\"font-weight: 400;\">for those who are rights holders.<\/span><\/i><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">But let\u2019s first remember what the stock exchange is important for.<\/span><\/p>\n<h1><\/h1>\n<h1><span style=\"font-weight: 400;\">A marketplace for everyone<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">The stock exchange is often looked at as an \u201cexit market\u201d when existing shareholders of companies sell their shares to new shareholders (investors) often at a premium to their original cost of acquisition. However, the stock exchange is not only a marketplace where sellers can dispose of their shares. In fact, the most important role of a stock exchange is for companies to raise required capital from existing shareholders or investors at large to support their growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus, the stock exchange is indeed a marketplace for everyone: a marketplace for \u201cexisting\u201d shareholders to raise liquidity by selling their \u201cexisting\u201d shares and a marketplace for companies to raise capital by selling \u201cnew\u201d shares to \u201cnew\u201d investors.<\/span><\/p>\n<h2><\/h2>\n<h2><span style=\"font-weight: 400;\">Two examples<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s take two quick examples.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a privately-held company wants to raise capital, it can do so through an initial public offering (IPO) by issuing new shares to investors (potential new shareholders). This is known as a primary offering, similar to what <\/span><b>Bonyan for Development &amp; Trade [BONY]<\/b><span style=\"font-weight: 400;\"> did in its IPO when it raised EGP250mn as part of the IPO process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, if a listed company wants to raise capital, it can do so by calling on its existing shareholders to shore up new capital to fund their operations and\/or reduce debt, for example. This is what <\/span><b>Abu Dhabi Islamic Bank Egypt [ADIB]<\/b><span style=\"font-weight: 400;\"> is doing today.<\/span><\/p>\n<h1><span style=\"font-weight: 400;\"><br \/>\nWhat about ADIB\u2019s tradable rights?<\/span><\/h1>\n<h2><span style=\"font-weight: 400;\">What happened?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">ADIB is currently undergoing an EGP3bn capital increase by issuing 300mn shares at a par value of EGP10 a share in addition to EGP0.10 a share as issuance fees. All in all, the bank will potentially raise a total of EGP3.03bn at the end of the day if the capital increase is fully covered. Thus, ADIB will be raising its paid-in capital from a current EGP12bn (1.2bn shares at a par value of EGP10\/share) to EGP15bn (1.5bn shares at a par value of EGP10\/share).<\/span><\/p>\n<h2><span style=\"font-weight: 400;\"><br \/>\nKnow your options: Who gets what?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Each group of investors (existing or new ADIB shareholders) will have several options to consider.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Existing shareholders<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This capital increase was available for ADIB\u2019s existing shareholders at the end of 16 November 2025 at a ratio of 1-to-4 (300mn \u201cnew\u201d shares for 1.2bn \u201cexisting\u201d shares). This means if you were a shareholder as of that date and say you owned 100 shares, today you would have the same 100 shares plus 25 rights that you can use to subscribe to 25 new shares.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Available options<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These existing shareholders have two options:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Exercise the right<\/b><span style=\"font-weight: 400;\"> to subscribe to the capital increase, especially if you think ADIB\u2019s stock is undervalued and you believe in the long-term value of the bank\u2019s franchise.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sell the right <\/b><span style=\"font-weight: 400;\">for any particular reason, such as:<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You do not have enough cash to shore up for the capital increase.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You want to raise liquidity by partially exiting your investment in ADIB.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You think ADIB\u2019s stock is overvalued.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Investors (new shareholders)<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An ADIB existing shareholder who decides to forgo the opportunity to participate in the bank\u2019s capital increase can sell the rights in the market, where either other existing ADIB shareholders or investors who are non-shareholders would buy them.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Available options<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These investors have two options:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Exercise the right<\/b><span style=\"font-weight: 400;\"> to subscribe to the capital increase, assuming they think ADIB\u2019s stock is undervalued and they believe in the long-term value of the bank\u2019s franchise.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sell the right <\/b><span style=\"font-weight: 400;\">if its market price rises beyond their acquisition cost so that they can generate a positive return.<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">All options in charts<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To make things even more crystal clear, we need to consider the rights as a call option that grows in value as the underlying stock (ADIB in this case) grows in value.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-14968\" src=\"https:\/\/thndr.horizondm.com\/blogpost\/wp-content\/uploads\/sites\/2\/2025\/11\/ADIBr-En-300x125.png\" alt=\"\" width=\"747\" height=\"311\" srcset=\"https:\/\/thndr.horizondm.com\/blogpost\/wp-content\/uploads\/sites\/2\/2025\/11\/ADIBr-En-300x125.png 300w, https:\/\/thndr.horizondm.com\/blogpost\/wp-content\/uploads\/sites\/2\/2025\/11\/ADIBr-En-1024x426.png 1024w, https:\/\/thndr.horizondm.com\/blogpost\/wp-content\/uploads\/sites\/2\/2025\/11\/ADIBr-En-768x319.png 768w, https:\/\/thndr.horizondm.com\/blogpost\/wp-content\/uploads\/sites\/2\/2025\/11\/ADIBr-En-1536x639.png 1536w, https:\/\/thndr.horizondm.com\/blogpost\/wp-content\/uploads\/sites\/2\/2025\/11\/ADIBr-En.png 2037w\" sizes=\"(max-width: 747px) 100vw, 747px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Source: Rumble Research<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Key price levels to keep in mind<\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>EGP\/share (EGP\/right)<\/b><\/td>\n<td><b>ADIB (stock)<\/b><\/td>\n<td><b>ADIBr (right)<\/b><\/td>\n<td><b>Subscription price<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">ADIB\u2019s stock price adjusted for the rights (16 Nov 2025)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">24.82<\/span><\/td>\n<td><span style=\"font-weight: 400;\">14.72<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10.10<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">ADIB\u2019s stock price (18 Nov 2025)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25.30<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15.20<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10.10<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">ADIB\u2019s target price (Rumble)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">36.00<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25.90<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10.10<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Source: Rumble Research<\/span><\/p>\n<h1><span style=\"font-weight: 400;\"><br \/>\nNow what?<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Given that ADIB is an open fundamental recommendation that we have, we believe the stock is undervalued. Our latest target price based on a 1.2bn share count was EGP42.5 a share. This is a pre-capital increase valuation. Assuming the capital increase is fully covered, which we think it will be, then the post-capital increase target price is now <\/span><b>EGP36 a share<\/b><span style=\"font-weight: 400;\">, implying a 42% upside from the latest closing price of EGP25.30 a share.<\/span><\/p>\n<h1><span style=\"font-weight: 400;\"><br \/>\nRecommended actions<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">We maintain our <\/span><b>INVEST <\/b><span style=\"font-weight: 400;\">rating on ADIB, which also means we recommend for existing shareholders to subscribe to the capital increase. This is in view of its above-average growth rate and potential windfall from its upcoming capital increase. We believe the capital increase will help grow the bank\u2019s balance sheet and eventually drive growth and profitability higher further.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, keep the following in mind:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>If the price of ADIB\u2019s<\/b><\/td>\n<td><b>is<\/b><\/td>\n<td><b>The price of ADIB\u2019s<\/b><\/td>\n<td><b>then<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>For ADIB existing shareholders<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">right + 10.10<\/span><\/td>\n<td><span style=\"font-weight: 400;\">lower than<\/span><\/td>\n<td><span style=\"font-weight: 400;\">stock<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buy the right then subscribe<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">right + 10.10<\/span><\/td>\n<td><span style=\"font-weight: 400;\">higher than<\/span><\/td>\n<td><span style=\"font-weight: 400;\">stock<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sell the right and buy the stock<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>For other investors<\/b><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">right + 10.10<\/span><\/td>\n<td><span style=\"font-weight: 400;\">lower than<\/span><\/td>\n<td><span style=\"font-weight: 400;\">stock<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buy the right then subscribe<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">right in the market<\/span><\/td>\n<td><span style=\"font-weight: 400;\">higher than<\/span><\/td>\n<td><span style=\"font-weight: 400;\">right (at acquisition)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Either sell the right at a profit or keep it to\u00a0 subscribe<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">right in the market<\/span><\/td>\n<td><span style=\"font-weight: 400;\">lower than<\/span><\/td>\n<td><span style=\"font-weight: 400;\">right (at acquisition)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Keep the right then subscribe<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Note: In any case, if the market price of the right rises higher than the price at which you acquired it, you can sell it in the market at a profit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Source: Rumble Research<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 12px;\"><b>Investment Disclaimer<br \/>\n<\/b><\/span><span style=\"font-weight: 400; font-size: 12px;\">This document is for informational purposes only and should not be construed as a solicitation, offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or to provide any investment advice or service.<\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: 12px;\">The information used to produce this market commentary is based on sources that Rumble Research (\u201cRumble\u201d) believes to be reliable and accurate. This information has not been independently verified and may be condensed or incomplete. Rumble does not make any guarantee, representation, or warranty and accepts no responsibility or liability as to the accuracy and completeness of such information. Expression of opinion contained herein is based on certain assumptions and the use of specific financial techniques that reflect the personal opinions of the authors of the commentary and is subject to change without notice. It is acknowledged that different assumptions can always be made and that the particular technique(s) adopted, selected from a wide range of choices, can lead to a different conclusion. Therefore, all that is stated herein is of an indicative and informative nature, as forward-looking statements, projections, and fair values quoted may not be realized. Accordingly, Rumble does not take any responsibility for decisions made on the basis of the content of this commentary.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: 12px;\">The decision to subscribe to or purchase securities in any offering should not be based on this report and must be based only on public information on such security.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: 12px;\">Recommendations and general guidance are not personal recommendations for any particular investor or client and do not take into account the financial, investment, or other objectives or needs of, and may not be suitable for, any particular investor or client. Investors and clients should consider this only a single factor in making their investment decision, while taking into account the current market environment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: 12px;\">Neither Rumble nor any officer or employee of Rumble accepts liability for any direct, indirect, or consequential damages or losses arising from any use of this report or its contents.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: 12px;\">Intellectual Property Rights: No part of this document may be reproduced without the written permission of Rumble. The information within this research report must not be disclosed to any other person if and until Rumble has made the information publicly available.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ADIB: What to do with the tradable rights? Here is what you need to know about Abu Dhabi Islamic Bank &#8211; Egypt\u2019s capital increase and what to do with its tradable rights. 19 November 2025 Amr Hussein Elalfy In this note, we lay down the story behind Abu Dhabi Islamic Bank &#8211; Egypt\u2019s [ADIB] EGP3bn [&hellip;]<\/p>\n","protected":false},"author":38,"featured_media":14965,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[255,298],"tags":[],"class_list":["post-14951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-product-updates","category---en"],"_links":{"self":[{"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/posts\/14951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/comments?post=14951"}],"version-history":[{"count":8,"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/posts\/14951\/revisions"}],"predecessor-version":[{"id":14983,"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/posts\/14951\/revisions\/14983"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/media\/14965"}],"wp:attachment":[{"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/media?parent=14951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/categories?post=14951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thndr.horizondm.com\/blogpost\/wp-json\/wp\/v2\/tags?post=14951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}