Lloyds' shareholders pockets a quick profit

New shares issued through Lloyds banking Group’s £13.5 billion rights issue brought considerable profits to bank’s shareholders.

The shares that were offered at 37 pence, gained 52.22 per cent before closing on Friday. 

The lender had provided existing shareholders with an opportunity to purchase 1.34 shares at a price of 37 pence against each share they already hold.

The offer closed at 11am on Friday. 

The concerned rights issue is a part of Lloyds’ plan to raise £22.5 billion to strengthen its balance sheet. It is also try hard to escape government’s asset protection scheme.

Shares in Lloyds slipped more than 3 per cent to close flat over the week.

Lloyds’ new shares will begin trading from December 14.