The UK and Ireland television and radio operator will use the money to reduce its debt, which stood at £107.2m on December 31 2007.
It is asking existing shareholders for £49.9m (which will cover additional expenses of £3.2m), giving them the right to buy two new shares at 130p for every three shares they hold.
The rights issue is priced at a discount of approximately 39% to yesterday's middle-market closing price of 213p. It has been fully underwritten by Numis and Goodbody Stockbrokers.
The news sent UTV's share price down 8% at 8.30am to 196p.
In addition to announcing the rights issue, the company said it had agreed a refinancing of its debt giving it a five-year £95m and €50m facility with the Bank of Ireland. It did not disclose the interest rate on the facility.
UTV built up the debt to fund acquisitions including The Wireless Group for £97m in 2005 and Dublin radio station FM104, which it acquired for £37.1m in December 2007.
It is not the only media company to have resorted to equity funding as the credit crunch made borrowing more expensive. Last month regional newspaper group Johnston Press announced a £212m rights issue.
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