UOB yesterday announced the details of their preference shares offering. 10 million UOB preference shares will be opened to subsciption, with 2 million shares earmarked for the retail market.

UOB Preference Shares announcement
UOB Preference Shares FAQ
UOB Preference Shares Offer Information Statement

EAch share has an issue price of $100 and for the retail investors, the minimum subscription is 100 shares (or S$10,000). The shares will provide a fixed dividend of 5.05% p.a. payable semi-annually on 15 March and 15 September each year.

They may be redeemed by UOB on 15 September 2013, 15 September 2018, and thereafter on 15 March and 15 September each year.

The offering will open at 9am on 28 August 2008 and close at 12 noon on 12 September (subject to changes). The preference shares is expected to be listed on the SGX from 16 September 2008, tradable in board lots of 100 shares.

Subscription for the retail investors can be done via the ATMs of UOB, DBS (including POSB) and OCBC. If demand exceeds supply, balloting will be conducted.

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Following the lead of DBS and OCBC, United Overseas Bank Limited (UOB) might be the third local bank to issue their own UOB preference shares during this period of financial turmoil.

Newspaper reports indicated that the yield might be 5.05%, which is slightly lower than the 5.1% offered by OCBC recently.

UOB has confirmed that they are currently considering issuing the preference shares and had already submitted a listing application to The Singapore Exchange Securities Trading Limited.

Once the necessary approval has been obtained, more details will be posted here of the UOB preference share offer.