Union Bank of Nigeria (UBN) Plc at the weekend listed listed supplementary shares that were issued under its recent rights issue, raising the commercial bank’s market capitalisation to N244.61 billion.
A total of 12.13 billion ordinary shares of 50 kobo each were listed at N4.10 per share at the weekend. With the listing of the 12.13 billion ordinary shares, the total issued and fully paid up shares of Union Bank increased from 16.99 billion to 29.12 billion ordinary shares of 50 kobo.
Union Bank had floated the rights issue to raise N49.745 billion from existing shareholders by offering 12.133 billion ordinary shares of 50 kobo each at N4.10 per share. The rights issue had 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.
Application for the rights issue had opened on Wednesday September 20, 2017 and closed on Monday October 30, 2017. Allotment results approved by the Securities and Exchange Commission (SEC) showed that Union Bank raised N59.87 billion as shareholders submitted 4,313 applications for 14.6 billion ordinary shares. The bank has however decided to retain its target of N49.745 billion and to return the excess monies to shareholders.
The breakdown of the allotment showed that 98.4 per cent of the shareholders accepted their rights in full with 52.03 per cent also applying for additional shares.
Chief Executive Officer, Union Bank of Nigeria (UBN)