SINGAPORE (Sept 30): United Overseas Bank did something unusual for shareholders this year, offering a scrip alternative for shareholders to receive their dividends.

The shares issued via the scrip were priced at $15.83 on 29 Sept, with UOB shares closing at $18.96 on the same day, 19% higher than what was issued.

While this has paid off for shareholders, the scrip dividend scheme has also enabled the bank to preserve its capital at a critical juncture when talk of risk weight on some assets being raised beyond the Basel III standard abound.

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