Unity Bank Plc rights offer opened over the weekend as the banks plans to list for a rights issue of 38.447 billion ordinary shares. The bank also plans to raise additional capital via a private placement.
Unity Bank plans to raise N19.22 billion through a rights issue of 38.447 billion ordinary shares of 50 kobo each to existing shareholders at a price of 50 kobo each. The rights have been pre-allotted to shareholders on the register of the bank as at December 16, 2013 on the basis of one new share for one share held as at the closure date. The rights issue will close in late June.
The bank will also be undertaking a private placement of 40 billion ordinary shares of 50 kobo each at 50 kobo each to bring in additional N20 billion in new equity funds next month.
The net proceeds of the new capital issues would be used for new branch development, upgrade of information and communication technology, human resource development, working capital and products and channel upgrade among others.
Unity Bank had a similar rights issue in 2013 where it raised about N12billion by selling 23.93 billion ordinary shares of 50 kobo each at N1.00 per share. It appears the last rights issue did not pay off as expected so one wonders how this one will perform.