Following the foot steps of Oando, The Nation reports United Bank for Africa (UBA) Plc at the weekend extended the offer period and gave additional discount of 12.5 per cent as part of incentives to woo shareholders to its ongoing rights issue.
UBA had launched a rights issue of 3.3 billion ordinary shares of 50 kobo each at N4 per share. The offer had opened on December 29, 2014 and was scheduled to close on February 5, 2015.
The bank at the weekend indicated that it has reduced the offer price by 12.5 per cent to N3.50 while extending the offer period by one week to February 12, 2015. The bank however retained the pre-allotment ratio of one for 10 shares and shares on offer of 3.298 billion ordinary shares of 50 kobo each. This implies that the gross proceeds target will reduce from N13.2 billion to N11.5 billion.
The extension and reduction in offer price had been approved by the Securities and Exchange Commission (SEC). UBA is the second issuer to reduce offer price in line with the downtrend at the stock market. Oando had earlier in January reduced the offer price of its rights issue.
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