September 20, 2017

By InvestAdvocate

Lagos (INVESTADVOCATE)-Shares of Union Bank of Nigeria Plc (UBN) dropped 4.67 percent to N5.72 from N6.00 traded the previous session; thereby losing 0.28 kobo on its first day of the lenders N50 billion Rights issue.

The bank is issuing 12.1 billion ordinary shares of 50 kobo each to existing shareholders at N4.10 per share to raise N50 billion in new equity funds as the first generation bank looks beyond its centenary.

The rights issue will be available 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 offer period opened today Wednesday September 20, 2017 and closes on October 30, 2017.

Emeka Emuwa, chief executive officer (CEO) of the bank had said the capital raised from the rights issue will support the banks strategy to accelerate business growth and position it as a leading commercial bank in Nigeria.

Chapel Hill Advisory Partners Limited is the Lead Issuing House to the Bank; and FSDH Merchant Bank Limited and Stanbic IBTC Capital Limited are the Joint Issuing Houses.