Union Bank Seeks NSE Approval For N50bn Rights Issue

Union Bank Seeks NSE Approval For N50bn Rights Issue

The management of the Nigerian Stock Exchange (NSE), on Monday informed dealing members firms (stockbrokers) of an application by Union Bank of Nigeria Plc seeking approval to issue and thereafter list new shares worth N49.748bn by way of rights.

According to Godstime Iwenekhai, Acting Head, Listings Regulation Department at the NSE, the application was submitted through the bank’s stockbroker- Chapel Hill Denham Securities Limited.

The amount is to be raised by way of rights of 12,133,646,995 ordinary shares of 50 Kobo each at N4.10 per share on the basis of five new ordinary shares for every seven held by existing shareholders of the bank.

The qualification date for the rights issue, the statement noted, is Monday, August 21, 2017.

Shareholders of the bank had on May 10, 2017, received shareholders’ approval to raise additional Tier 1 capital to finance its growth strategy and position as a leading commercial bank in Nigeria, even as they challenged the directors to ensure favourable pricing and timing of the offer to enable them partake of the exercise.

“We are sure that the rights issue if floated at a favourable time will be fully subscribed,” they assured.