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28.10.2008 Business & Finance

UT Shares Oversubscribed

By Daily Guide

Information reaching CITY & BUSINESS GUIDE indicates that shares of UT Financial Services have been marginally oversubscribed. Though the results are yet to be made public, this paper can confirm that shares of the largest non-bank financial institution experienced a slight gain.

It was the expectation of some market watchers and analysts that shares of the non-bank financial institution will be significantly oversubscribed despite the financial chaos that has hit global markets.

The financial turmoil in the USA, most European countries and some Asian countries to a larger extent prevented many foreign investors from acquiring shares of one of the finest companies in the country.

Databank Brokerage Services, lead manager of the UT public floatation yesterday submitted the results to the Securities and Exchange Commission, regulators of the capital market and it is expected that the results would be made public by the end of the week.

When the shares began selling, CITY & BUSINESS GUIDE reported that both local institutional and individual investors scrambled for the share purchase forms of the non-bank financial institutions, which led to shortage of the forms.

UT Financial Services launched its IPO some weeks ago, involving the sale of 90,293,000 ordinary shares at 30 pesewas each.

Its intention was to raise GH¢27,087, 900 from the offer with the ordinary shares consisting of 80,293,000 shares being sold by the existing shareholders and additional 10,000,000 shares for recapitalization of the company.

The company vowed not to issue additional shares in the event of oversubscription.

It stated that shares would be pro-rated with certain minimum amount as the exact figure will be determined by the board, in consultation with the lead managers and regulators, in the case of oversubscription.

By Charles Nixon Yeboah