The Securities and Exchange Commission (SEC) has approved the allotment of Unity Bank Rights Offer following its successful conclusion.
The Rights Offer which was on the basis of three new shares for every two held was concluded in August this year and was aimed, among other purposes, to shore up the working capital of the bank.
According to SEC approval, the N1 per share Rights Offer was 72.45 per cent subscribed by 9,638 applicants resulting in the allotment of a total of 17,335,082,554 out of 23,928,142,026 ordinary shares of 50 kobo each.
Meanwhile, capital market analysts have expressed satisfaction with the performance of the Rights Offer in the light of current trend in the market where a number of offers failed to reach the threshold of 50 per cent subscription. By the prevailing capital rules, rights offer is considered a failure if the subscription falls below the 50 per cent mark.
In another development, the Management of Unity Bank has expressed confidence that the success of the Offer, which marks a major milestone in the Bank’s recapitalisation to meet the minimum capital adequacy ratio prescribed by the Central Bank of Nigeria.
With the success of its Rights Offer, recoveries of otherwise provisioned debts, asset rationalisation and improved profitability, financial pundits posit that the bank may well have exceeded its recapitalisation target.