Business

UBN seeks shareholders’ approval for N50bn share sale

union bank

Union Bank of Nigeria in a plan to shore up its share capital has announced  it is to seek shareholders approval to raise N50 billion through a share sale to existing investors.

In a notice to shareholders, the lender also said it will seek approval to increase its authorised share capital to N17.5 billion from N9.5 billion on December 7, 2016.

Currently, the bank has 14.94 per cent free float deficiency that is below Nigerian Stock Exchange (NSE) minimum requirement and expected to comply on June 30 , 2017.

NSE rule stipulates that listed companies maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market for their securities.

For instance, the free float requirement for companies on the Main Board is 20 per cent and 15 per cent for Alternative Securities Exchange Market (ASEM) companies.

According to NSE rule, “Companies listed on The Exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market for their securities. The free float requirement for companies on the Main Board is 20per cent and 15per cent for ASEM companies.”

Some other companies that have free float deficiencies include Capital Hotel Plc, Great Nigerian Insurance Plc, Chellerams Plc, Nigerian Ropes Plc, A.G Leventis Plc, Interlinked Technologies Plc, Transcorp Hotels Plc, Infinity Trust Mortgage Plc, Caverton Offshore  Support Group Plc and African Paints Plc.

While most of them are enjoying a period of grace to comply, Chellarams Plc has applied to migrate to the ASeM. On the other hand, Nigerian Ropes Plc has stated its intention to delist from the NSE.

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