Sources reveal to us that UBA will commence rights issue on Monday, 15th December 2014. This was after a completion board meeting today where the offer date and pricing was approved. The rights issue price is going to be N4 and the bank plans to raise about N13billion. The rights will be 1 for every 10 shares owned.
UBA opened at N4.76 and closed the week at N4.08 (lost 14% this week alone) and has a year low of N4. The current rights issue price looks ‘attractive’ and suggest a P/E ratio of 2.94 which in our view is in the ‘cheap’ territory. More to follow….