Union Bank IPO opens for subscription from 10 Feb

Thursday, 3 February 2011 01:27 - - {{hitsCtrl.values.hits}}

Union Bank of Colombo’s Initial Public Offer (IPO) worth Rs. 375 million will be up for subscription from 10 February whilst its official opening is on 24 February.

The Colombo Stock Exchange (CSE) has approved in principle Union Bank’s application for listing of ordinary voting shares on the Main Board. The IPO involved 15 million ordinary voting shares at Rs. 25 each raising Rs. 375 million.

The IPO is part of the bank’s Rs. 1.1 billion fund raising exercise, which previously involved a Rights Issue that was oversubscribed by four times and a Private Placement oversubscribed by three times.

Financial advisor and joint manager to the offer is NDB Investments Bank Ltd., whilst joint managers to the offer is Acuity Partners Ltd. Registrars to the offer is P.W. Corporate Secretarial Ltd.

The IPO, which coincides with Union Bank’s 15th anniversary, will further facilitate its expansion and increase lending capacity while enhancing new product development.

With a total asset base of Rs. 2.50 trillion and total deposits amounting to Rs. 1.85 trillion in 2009 alone, the banking industry is expected to lead the economic growth at a national level and build investor confidence in the country’s economy, ready to surge forward in the post-war recovery phase.

Union Bank’s portfolio of services covers corporate banking, personal banking, and trade and treasury services. The outstanding success of the Rights Issue, Private Placement and the IPO means that Union Bank will be able to fulfill Central Bank requirements of core capital adequately.