Diamond Bank Plc’s rights issue aimed at raising N50.37bn for enhancing the bank’s operations closed on Tuesday.

The closure comes despite calls by some of the bank’s shareholders for the issue to be extended.

Diamond Bank had received the approval for the issue from shareholders in April at its Annual General Meeting.

The issue, which opened on July 30, saw the bank offering a total of 8,685,145,863 ordinary shares of 50 kobo each to its shareholders in the ratio of three new ordinary shares for every five ordinary shares held as of June 13, 2014 at N5.80 per share.

Ahead of the rights issue the Group Managing Director, Diamond Bank, Dr. Alex Otti, had explained that its net proceeds would be applied towards the development of the bank’s Information and Communications Technology infrastructure.

According to him, the fund will also be used as working capital support as well as for the expansion and refurbishment of the bank’s business locations.

Also, the successful outcome of the rights issue is expected to improve Diamond Bank’s tier 1 capital and position it to seize bigger opportunities in the sector, according to the group managing director.

As the closing date approached, some of the bank’s shareholders had called for an extension and asked to be allowed to buy more than their allotted share in the rights issue, according to a statement from the bank.

The Diamond Bank GMD/CEO had said recently during a visit to the Exchange the fund raised the issue would place the bank in a better position to achieve organic growth and guaranty better returns to its shareholders.

Punch