Bangladesh's UCB wins approval for Tk 775 crore rights share issue

What's the deal? The Bangladesh Securities and Exchange Commission (BSEC) has approved United Commercial Bank (UCB)Dealroom has a profile for this one. Try Dealroom →'s proposal to raise nearly Tk 775 crore (about $62.9 million) through a rights share issue.

The details: UCB will issue 775,187,949 ordinary rights shares with a face value of Tk 10 each, priced at Tk 10 per share. Existing shareholders can subscribe to one rights share for every two they hold, based on a 1:2 entitlement ratio.

Why now? BSEC granted approval at the commission's 1,019th meeting on Tuesday, chaired by BSEC Chairman Masud Khan.

What's the endgame? The proceeds will support UCB's regular banking operations and business activities, according to BSEC.

The signal: Rights issues let listed banks tap existing shareholders to bolster capital without new external backers — a route that keeps ownership concentrated while shoring up the balance sheet.

Read more: Business Mirror