Following a successful completion of the reconstruction of the Union Bank’s shares, the Nigerian Stock Exchange (NSE) at the weekend? lifted the full suspension placed on trading in the shares of the bank on the floor of the Exchange.
It would be recalled that the shares of Union Bank have been on full suspension for several months now even as the management of the bank continued to grow its bottom-line.
According to a statement from the NSE on Friday, “Union Bank of Nigeria Plc has announced the completion of its share reconstruction exercise. Consequently, a total of 2,533,125,000 shares of N0.50 par value at N11.15 per share were admitted on the Daily Official List on Friday, December 23, 2011, in replacement for the former issued shares of 13,509,726,273.”
Indication emerged recently that the rights issue of the bank may be oversubscribed following shareholders’ expression of interests in the scheme.
Major shareholder blocs and investment managers said they have seen enormous expressions of interests and fund deposits, aligning with initial book-building survey by investment advisers that showed that shareholders had placed funds on standby preparatory to the opening of the rights.
UBN is offering about 1.41 billion ordinary shares of 50 kobo each at N6.81 per share in the ratio of five new ordinary shares for every nine ordinary shares held as at September 30, 2011.