The issue price comes far below what some analysts had expected in recent weeks - when speculation centred around 24-25 francs per share - but still above the 17-20 franc price feared by some, which would have meant a massive dilution for existing shareholders.

UBS shares have shed more than 36 per cent so far in 2008, forcing the bank to bring the emergency rights issue to market at a low level to ensure support.

UBS said it would issue over 760 million new shares, offering existing shareholders seven new shares for every 20 shares they hold.

UBS, Europe's hardest-hit bank by the subprime crisis, is busy restructuring and offloading distressed assets after heavy losses originating in US mortgage debt crisis forced it into two emergency capital-raising exercises.

The rights issue is set to see the fallen Swiss bank's capital raising measures, which include cash injections from Singapore and a Middle East investor, hit around 37 billion francs - almost the same as its US$37 billion in writedowns from the crisis.

On Wednesday the group finalised a US$15 billion deal to sell weakened mortgage-related assets to US fund manager Blackrock , in a deal similar to one used by Citigroup.

The rights issue has been fully underwritten by a syndicate of banks led by J.P. Morgan, Morgan Stanley, BNP Paribas and Goldman Sachs. -- REUTERS