(Updates with closing price in second paragraph.)
Nov. 15 (Bloomberg) -- United Bank for Africa Plc, the Nigerian lender with operations in 19 African countries, fell the most in more than two weeks after Stanbic IBTC Bank Plc cut its recommendation and price estimate for the stock.
The shares lost as much as 4.8 percent, the biggest intraday drop since Oct. 28, and closed 4 kobo, or 1.4 percent, lower at 2.90 naira by the 2:30 p.m. in Lagos.
The lender was downgraded to “hold” from “buy” at Stanbic IBTC Bank Plc, with the price estimate reduced 52 percent to 3.38 naira.
The lower price estimate reflects a “28 percent dilution we expect from the raising of capital and our lowered earnings outlook,” Rele Adesina and Muyiwa Oni, analysts at Lagos-based Stanbic IBTC, said today in an e-mailed note to clients.
UBA, as the Lagos-based lender is known, plans to sell 12.7 billion shares by special placement to raise capital, it said in a statement on Oct. 21. Shareholders will vote on the plan at a meeting on Nov. 18, it said.
The stock has fallen 60 percent this year, compared with a 19 percent decline in the Nigerian Stock Exchange All-Share Index.
--Editors: Stephen Kirkland, Ash Kumar
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