February 13, 2020/Cowry Asset

We note that the completion of the Rights Issue immediately increases the ordinary share capital in issue to 18,559,970,145 ordinary shares (15,961,574,145 shares + 2,598,396,000 shares); albeit we expect the total equity to get a boost given the relative premium price of N1.00 when compared to the nominal price N0.50k.

Notwithstanding, with the ongoing unbundling exercise being undertaken by its parent company, UACN, we opine that investors look beyond the Rights Issue, and consider investing in the parent company (UACN) and/or the property FUND (UPDCREIT) given the expected overall positive effect of the restructuring exercise.

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