Union Bank will hold a share issue on June 6, seeking to raise NIS 180 million in shares and another NIS 250 million in options, the bank's board of directors has decided.
The issue for institutional investors is scheduled for next Tuesday. The prospectus is based on the bank's financial statements for the end of 1999, but will be accompanied by the bank's financial statements for Q1 2000, published this week and reflecting a sharp increase in profitability.
Union Bank, which controlled by the Eliahu group, is one of the few Israeli banks not listed on the stock exchange. Union Bank's shares have not been listed since the bank shares crisis in October 1983.
The issue is intended to allow the bank to improve its capital ratio, so as to be able to expand its business operations. It should be noted that Mizrahi Bank, too, planned to issue at the end of the month, but the plan has been put off due to the performance of the bank's share on the stock exchange.
Published by Israel's Business Arena on 25 May, 2000