The company intends to raise N 48.99 billion through a rights issue of 12,133,646,995 ordinary shares of 50 Kobo each to existing shareholders at a price of N 4.10 per share.
The Rights officially opened on Monday September 20, 2017 and closes Monday October 30, 2017 on a basis of Five (5) New Ordinary Shares for every Seven (7) Shares held.
Union Bank was one of the banks involved in the financial crisis of 2010. It was taken over by a consortium of foreign investors subsequently. The bank re-branded itself as well to make it self appeal to younger generation.
The Bank already had 16.94 billion shares outstanding before the rights issue. Post this rights issue they will have 29 billion shares outstanding.
That is a lot of shares outstanding. That mean the bank has to really increase its earnings just to maintain its current earnings per share.
Shares of Union Bank Plc ( UBN ) currently trade at N 5.75 per unit. We would expect them to move closer to the rights price everything else being equal.
reporting for easykobo.com on Tuesday, Sep 26 2017 from Lagos, Nigeria