Posted by KEN NWOGBO on
ONE of Nigeria's leading financial institutions, Union Bank of Nigeria (UBN) Plc will this week take the wrapper off the biggest share offer expected to fetch it some N60 billion.
ONE of Nigeria's leading financial institutions, Union Bank of Nigeria (UBN) Plc will this week take the wrapper off the biggest share offer expected to fetch it some N60 billion.
UBN already a formidable institution will apply part of the proceeds of the offer in its expansion programme.
The other parts will go into investments in information technology as well as programmes aimed at making the bank more customer friendly.
Senior Manager Corporate Affairs, Mr Francis Barde said the offer which has been subject of discussions will open Wednesday.
Ahead of the opening, UBN according to Mr. Barde, has obtained all necessary approvals.
Shareholders of the bank had last year approved the board's bid to float 89 million ordinary shares by way of rights issued of one new ordinary shares to every five already held and by way of public offer of subscription 1.1 billion ordinary shares of 50 kobo each.
Rights issues is for the existing shareholders of the bank which public offer suscription in an invitation to public to buy into the bank.
The offers which have Union Merchant Limited, Afribank International Limited and NAC Bank Limited as issuing houses, will be on sale at the cost of N20 per share.
UBN reported a gross earnings of N59 billion for its operations ended March 2005 with a profit before tax of N12.9 billion.
With a shareholders fund of N43.2 billion and asset in excess of N550.9 billion, UBN is one of the most of solid financial institutions in Nigeria.