Morison, UBN seek N502m, N49.7 bn rights’ issue

Due to the prevailing high cost of borrowing from financial institutions in the country, Morison Industries Plc and Union Bank, like other quoted companies who are in dire need of capital, have resorted to applying for a rights issue to be approved by the Nigerian Stock Exchange.

In Morison Industries Plc’s proposed, but yet to be approved rights issue, shareholders will get eleven new shares for every two held.

A statement by the NSE on Friday, said that Morison’s Stockbroker; GTI Securities Limited had submitted an application to the NSE for approval and listing of a Rights Issue of 836,983,125 Ordinary Shares of 50 Kobo each at 60 Kobo per share.

If approved the company will have the opportunity to raise about N502 million fresh capital from its investors.
The statement also noted that shareholders on the list of the company’s register as at Friday, 25th July, 2017, qualify for the rights issue.

The statement read, “Morison Industries Plc (‘’Morison’’) through its Stockbroker; GTI Securities Limited, submitted an application to The Nigerian Stock Exchange for approval and listing of a Rights Issue of 836,983,125 Ordinary Shares of 50 Kobo each at 60 Kobo per share on the basis of eleven (11) new Ordinary Shares for every two (2) Ordinary Shares of 50 Kobo held.
The Qualification Date for the Rights Issue is, 25 August 2017.”

For Union Bank Plc, the plan to raise about N49.7bn, will premise on the allotment of five new ordinary shares for every seven held.

The bank, which had also submitted an application for the rights’ issue to be approved by the NSE, would issue 12.13 billion ordinary shares of 50 kobo each to existing shareholders at N4.10 per share.

The qualification date for UBN’s rights’ issue, was 21 August 2017.

Afolabi Adesola