Union Bank of Nigeria (UBN) plans to issue about 12.2 billion ordinary shares of 50 kobo each to existing shareholders and employees to raise N50 billion in new equity funds as the first generation bank looks beyond its centenary.
Regulatory documents showed that UBN will issue 12.13 billion ordinary shares of 50 kobo each to existing shareholders at N4.10 per share, in a bid to raise N49.73 billion. The first generation bank will also be selling about 51.3 million ordinary shares of 50 kobo each at N5.67 under its Union Bank Long Term Transformation Incentive Plan. The proceeds of N291 million from the shares allotment to employees bring total combined offer size to N50.02 billion.
The rights issue will be pre-allotted to shareholders on the basis of five new ordinary shares for every seven ordinary shares held as at the close of business on Monday August 21, 2017.
The bank has filed application with the Nigerian Stock Exchange (NSE) for approval to list the rights’ shares, one of the major final approvals necessary for the completion of the pre-offer process and opening of the subscription.
Already, the NSE has approved the allotment of shares under the bank’s Employee Share Scheme.
Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, has said one of the main highpoints of the second half will be the raising of N50 billion new equity fund.