ubaShareholders of United Bank for Africa (UBA), who subscribed for the bank’s rights issue in February, have earned more than 23 per cent capital gain.
UBA had between December 2014 and February 2015 sought to raise N11.5 billion new equity funds from existing shareholders through a rights issue of one ordinary share for every 10 ordinary shares at a price of N3.50 per share. The rights issue was fully subscribed.
The bank, last weekend listed about 3.3 billion ordinary shares of 50 Kobo each that arose from the rights issue.
While the supplementary shares were listed at the offer price of N3.50 per share, UBA opened on Tuesday, July 28, at N4.31 per share, providing immediate return of 23.1 per cent or about N2.67 billion capital gains to the rights’ holders.
The listing was closing step in the final phase of the issuance process, which included dispatch of share certificates and electronic transfer of shares to shareholders’ shareholding account at the Central Securities Clearing System (CSCS). With the shares in the CSCS, the rights’ holders can trade on their shares.
