Union Bank of Nigeria (UBN) Plc on Wednesday opened application list for its N50 billion supplementary offer as the first generation bank seeks to raise new equity funds from existing shareholders.
Union Bank is raising N49.745 billion from existing shareholders through a rights issue of 12.133 billion ordinary shares of 50 kobo each at N4.10 per share. The rights issue has been pre-allotted on the basis of five new ordinary shares of 50 kobo each for every seven ordinary shares held as at the close of business on Monday August 21, 2017.
The application list will remain open till the close of business on Monday October 30, 2017. The rights will also be tradable on the Nigerian Stock Exchange (NSE) during the offer period, giving shareholders that renounced their rights opportunity to trade those shares at profit. Union Bank’s share price closed Wednesday at the NSE at N5.72 per share.
Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Emeka Emuwa, said that with the commencement of the rights issue subscription, the bank has now officially entered a new phase of its transformation where it will be focused on accelerating business growth to deliver on its objective of becoming one of Nigeria’s leading financial institutions.
Shareholder forums will also hold in Lagos, Port-Harcourt and Abuja this month.
Union Bank had announced earlier this month that it had received all necessary regulatory approvals from the Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC) to launch the rights issue.
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