A Review of the Nigerian Energy Industry

Listing: Nigeria’s Unity Bank records N950m over-subscription

23 October 2014, Lagos – WITH the completion of its right issue and special placement exercise, Unity Bank Plc, yesterday, listed a supplementary shares of 78.45 billion ordinary shares of 50 kobo on the Nigerian Stock Exchange (NSE).

Unity-Bank-LogoThe Chief Executive Officer of the bank, Henry James Semenitari, while addressing stockbrokers on the Nigerian Stock Exchange, explained that the listing brought the total outstanding shares in issue of the bank to 116.90 billion ordinary shares of 50 kobo.

He added that the rights issue was oversubscribed in excess of N950million. He pointed out that the bank would embarked on share reconstruction due to large outstanding shares of the bank, adding that the exercise would add value to shareholders investment.

“We are definitely going to do share reconstruction; we would have an Annual General Meeting approval for that. So, in a very short while that will be done, considering the number of shares on issue in the market that will definitely be done in the interest of shareholders.

Rights issue
He said the rights issue went across the shareholders of the bank., noting that the entire rights were taken by local investors, without the participation of foreign investors.

He pointed out that the funds would be invested in human capital, development of information technology, as well as strengthen the bank’s expansion programme

Semenitari added that this is a good step in the history of the bank, adding that with the support of the stockbroking community the bank would moved from being a penny stock to a pound stock.

He also stressed that the bank’s capital adequacy ratio was in compliance with regulatory guidelines, while assuring the stockbroking community that the bank would work closely with stock brokers going forward so that they would be better equipped to deal with enquiries about the bank.

The managing director of APT securities and Funds Limited, Gruba Kurfi said. “The Unity Bank shares 38.446 billion ordinary shares of 50 kobo to be listed on the trading floor as it has been successfully completed the rights. In addition to that, we have 40 billion ordinary shares of 50 kobo which was placed on a special placement that has been completed together with the right. The two make a complete total of 78.446 billion ordinary shares of 50 kobo. I hereby on behalf of Unity Bank request the listing of 78.446 billion ordinary shares of Unity Bank of Nigeria, arising from the rights issue and special placement be listed on the floor of the NSE today.”

The bank had in June this year raised about N39.2 billion which comes from Rights Issue of 38.45ordinary shares of 50 kobo each at 50 kobo per share and private placement of 40 billion ordinary shares of 50 kobo each at 50kobo per share.
*Hellen Oji – The Guardian

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