NaijaWire

Get Ready: Union Bank IPO/Public offering on the way

Nigerian Tribune (Abuja) - The shareholders of Union Bank PLC, one of Nigeria’s largest banks, have proposed that the bank raise a minimum of N500 billion, a necessary move owing to the depth of the market which had enabled other banks in the country raise fund exceeding their targets.

While full details are not readily available, the shareholders have authorised the bank to raise additional capital by way of combined public offer, Global Deposit Receipt (GDR) and rights issue of 1,117,650,000 billion ordinary shares of 50 kobo each which shall be issued and allotted provisionally to existing shareholders and use any over-subscription to capitalise the excess fund and also allot additional shares to the extent that can be accommodated by the bank. This will however require Central Bank’s approval before the IPO is made public.

What will be interesting to know is how much investors will be asked to pay for the 50k offer.

News source: http://www.tribune.com.ng/29112007/news/news10.html

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