UBS plans to issue SFr3.8 billion (£2.1 billion) of new shares to raise capital. The Zurich-based private bank says it is offering 293m newly issued shares from authorised capital to a small number of institutional investors at a price of SFr13 per share.
For the second quarter of 2009, UBS expects a net loss following a SFr2 billion loss in the first three months of the year. It says the majority of the expected loss is attributable to own credit and the restructuring charges that have already been announced.
Although UBS does not quantify the loss, it says the result is “expected to represent an improvement” compared with the first quarter of this year. This is mainly because of better market conditions affecting the investment banking business and a reduction in losses and write downs on legacy risk positions, says UBS in a statement.
Earlier this month Barclays sold off Barclays Global Investors (BGI), including iShares, its exchange traded fund (ETF), in what advisers described as a desperate attempt to raise capital.