UBS raising $15.5 bln at deep discount
Güncelleme Tarihi:
UBS AG said Thursday that it would raise $15.5 billion in a rights issue at a 31 percent discount below the current share price.
UBS, hard hit by its exposure to the United States mortgage market, said it will sell new shares at 21 francs ($20.09) each to existing shareholders, compared with the closing price of 30.64 francs on the Zurich exchange Wednesday.
Shareholders will receive one subscription right per share held, with 20 of the rights entitling the holder to buy seven new shares. The new rights will be tradeable, the bank said.
Vontobel's Claudia Meier said the price was cheaper than she expected and the total issue of 760,295,181 new shares was fewer than she anticipated.
The bank said the subscription rights will be traded from May 27 through June 9 in Zurich and on the New York Stock Exchange.
UBS on Wednesday finalized the sale of $15 billion in subprime and Alt-A mortgage assets to U.S.-based BlackRock Inc. as it tries to pare exposure to housing securities. The securities had a nominal value of $22 billion.
The capital hike is UBS' second major injection of funds in recent months, after the government of Singapore's fund and an undisclosed Middle Eastern investor pumped in 13 billion francs.