Unity Bank lists new shares as capital base rises by N39.2bn
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IMAGE: Henry Semenitari, managing director, Unity Bank plc, »
Unity Bank plc has listed the supplementary shares from its recent combined rights and special placement offers, adding N39.22 billion in new equity funds to its capital base and similar amount to its market capitalisation.
Unity Bank listed a total of about 78.45 billion ordinary shares of 50 kobo each at par value at the Nigerian Stock Exchange (NSE), conclusively rounding off its rights issue of 38.45 billion ordinary shares and special placement of 40 billion ordinary shares, both of which were offered at par value.
The supplementary listing significantly impacted on the capital base of the bank and its market capitalisation, and to some extent supported the rising aggregate market capitalisation of all quoted equities at the NSE.
Speaking at the NSE, Henry Semenitari, managing director, Unity Bank plc, noted that the bank’s offers were oversubscribed, an indication of the investing public’s confidence in the bank and its growth agenda.
According to him, the rights issue went across the shareholders of the bank and the entire rights were taken by local investors as there were no foreign investors.
He said the bank decided on the new equity funds in order to accelerate expansion and create value for shareholders.
To him, the new equity funds would be used for branch expansion, investing in human capital, and the development of information technology.
He said the bank would undertake share reconstruction given the size of its current outstanding shares, saying the bank would explore all avenues to recover debts, including the use of the Economic and Financial Crimes Commission.
He also noted that the bank’s capital adequacy ratio was in compliance with regulatory guidelines, adding that all the branches that the new management met when it came on board were operational and plans were ongoing to open more.
In his remarks, Garba Kurfi, managing director, APT Securities and Funds Limited, said “Unity Bank has a bright future,” as its third quarter result recently released by the bank showed.
According to him, with the additional capital and the ongoing debt recovery, and with the bank’s results so far, the bank may likely reward its shareholders in the next two years.
The third quarter result for the period ended September 30, 2014, showed that Unity Bank made a profit after tax of N11.05 billion, an increase of 856.83 percent on N1.15 billion recorded in comparable period of 2013.
Article Credit: Businessdayonline