A large investor at Abu Dhabi Commercial Bank has sold its fully stake in the bank for 1.1 billion dirhams ($ 300 million).
According to Arab Net, the shareholders who did not disclose 164 million shares at Abu Dhabi Commercial Bank at a price of 6.70 dirhams ($ 1.82) per share, according to the conditions I have seen by Bloomberg. More than one bids were received at this level.
The shares were launched at a discount of 5.5% for the closing price of AED 7.09. Abu Dhabi Commercial Bank shares increased by 14 percent this year, less than half an increase of 33% for the Abu Dhabi General Market Index.
The stock has not yet recovered from the recession caused by the epidemic, and was lagged by gains by 31% of Abu Dhabi, the largest bank in the United Arab Emirates.
Edmund Christo, a financial analyst, said it was difficult to grow as the bank need to invest to improve its competitiveness and restore its market share. The expansion is still necessary to support vulnerable revenue forecasts at the Commercial Bank. Therefore, the bank is likely to focus on more integration opportunities.
The shares offered (164 million shares), equivalent to 2.4% of the bank's market value, and the guarantee price range was between AED 6.5 and AED 6.8.
Abu Dhabi Commercial Bank has closed down 5% to AED 7.09.
