HNB's Rights undersubscribed

Second largest private bank, HNB’s rights issue had gone undersubscribed, the Bank announced on Friday.

The voting offer had been subscribed up to 66% whilst non-voting issue had drawn only 40% subscription. In June HNB announced a Rs. 7.1 billion fund raising via a one for 10 Rights Issue amounting to 28.7 million voting shares at Rs. 219.50 each and 7 million non-voting shares at Rs. 119.50. Following the offer, 19 million voting shares and 2.8 million non-voting shares were subscribed, raising Rs. 4.4 billion.

HNB said that 9.7 million voting shares and 4.1 million non-voting shares were unsubscribed. “Out of the remaining unsubscribed shares the bank has issued 4.8 million voting shares and 4.1 million non-voting shares on 7 September and they were listed on 8 September,” HNB added.

HNB voting share last week closed at Rs. 211.70 down by Rs. 1.70 and non-voting unchanged at Rs. 112.