In a letter of notice from the management of Union Bank plc to the management of Nigerian Stock Exchange, (NSE), on Friday, Union Bank announced the results of its N50 billion rights issue.

The bank had offered 12,133,646,995 Ordinary Shares of 50 Kobo each on the basis of five New Ordinary Shares for every Seven Ordinary Shares at N4.10 Kobo per share.

The offer opened on September 30, and closed on October 30, 2017.

Chapel Hill Advisory Partners Limited was the Lead Issuing House to the Rights Issue; while FSDH Merchant Bank Limited and Stanbic IBTC Capital Limited were Joint Issuing Houses.

Proceeds from the offer will be used to enhance the Bank’s regulatory capital requirement and enable it take advantage of emerging sectors of the Nigerian economy.

A summary of the Rights Issue is outlined as: 4,313 Acceptance Forms for 14,602,842,222 units of the Rights received were found to be valid under the terms of the Rights and were processed accordingly. The Rights Issue was therefore 120.3% subscribed.

The bank, however did not allot additional shares, as it shown below:

4,246 shareholders accepted their Rights in full totaling 10,918,247,917 ordinary shares.

32 shareholders with a provisional allotment of 31,639,722 ordinary shares partially accepted their rights for 31,264,665 ordinary shares. Thus, the balance of 375,057 ordinary shares were renounced.

35 shareholders purchased Rights for 290,378,677 ordinary shares traded on the floor of the Nigerian Stock Exchange.

Of the 4,246 shareholders who took up their rights in full, 2,244 shareholders also applied for additional 3,362,950,963 ordinary shares and were partially allotted from the renounced rights at a pro rata rate of 26.6%.

A total of 893,380,679 ordinary shares were fully renounced bringing the total number of shares renounced to 893,755,736 ordinary shares.

A total of 2,469,195,227 additional ordinary shares requested were unsuccessful as the Issue was oversubscribed.

The above stated basis of allotment, as well as this announcement has been cleared by the Securities & Exchange Commission