The United Bank for Africa (UBA) Plc has commenced a rights issue aimed at raising N239.4 billion through the sale of 6.8 billion ordinary shares at N35.00 per share.
The offer, which opened on Friday, November 15, 2024, enables existing shareholders to purchase additional shares in the ratio of one new share for every five shares held as of November 5, 2024.
This rights issue follows UBA’s approval in May 2024 to establish a N400 billion Equity Shelf Programme, as outlined by Group Chairman Tony Elumelu. He highlighted that this move is the first step in UBA’s broader capital-raising agenda, designed to fortify the bank’s capacity for growth and bolster its leading position in the banking sector.
“The primary objective of this Rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry,” Elumelu explained.
He added that the proceeds will fund UBA’s lending expansion, enhance its digital infrastructure, and support sustainable business practices, particularly across its African operations.
This issuance aligns with the Central Bank of Nigeria’s revised minimum capital requirements for commercial banks in Nigeria, set to ensure financial stability within the industry.
Elumelu further noted UBA’s commitment to driving economic development across Africa, emphasizing the bank’s historic partnership with the African Continental Free Trade Area (AfCFTA) Secretariat. UBA has pledged up to $6 billion over three years to support eligible SMEs across the continent, reinforcing its role in fostering economic growth.
UBA’s financial resilience has consistently been evidenced by its strong performance and commitment to shareholder returns, exemplified by its progressive dividend policy with a 14.8% annualized yield. In 2023/2024, UBA received prestigious awards, including ‘Bank of the Year’ accolades in eight African subsidiaries and the Regional Award for Africa, alongside recognitions for its operations in frontier markets and SME banking.
Existing shareholders may apply for their rights via the NGX e-offer portal during the offer period, with options for additional shares beyond their provisional allotment. UBA customers can also access their rights through the bank’s internet and mobile banking channels.
UBA Plc, a prominent Pan-African financial institution, serves over 45 million customers through more than 1,000 offices in 20 African countries and maintains a global presence in New York, London, Paris, and Dubai. The bank continues to connect businesses across Africa and internationally through its extensive retail, commercial, and corporate banking services.
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