United Bank for Africa (UBA) Plc has announced plans to raise N239.4 billion via a rights issue of 6,839,884,274 new ordinary shares, each priced at N35.00 per share. The rights issue opened on Friday, November 15, 2024, and offers existing shareholders the opportunity to purchase additional shares in proportion to their current holdings.
Details of UBA’s Rights Issue
The rights issue allows UBA shareholders, as of November 5, 2024, to subscribe for one new ordinary share for every five existing shares they hold. The proceeds from this rights issue will contribute to the bank’s broader capital raising initiative, which includes UBA’s N400 billion Equity Shelf Programme, approved by shareholders at the bank’s Annual General Meeting in May 2024.
Strengthening UBA’s Capital Base and Expanding Operations
According to UBA’s Group Chairman, Tony Elumelu, the primary objective of the rights issue is to strengthen the bank’s capacity to seize growth opportunities and maintain its leadership in the banking sector. The funds raised will not only support regulatory compliance but also bolster UBA’s lending capacity, enhance digital infrastructure, and promote sustainable business practices across the bank’s operations, especially within Africa.
Elumelu also emphasized UBA’s commitment to fostering economic growth in Africa, citing the bank’s partnership with the African Continental Free Trade Area (AfCFTA) Secretariat. UBA has pledged up to $6 billion in financing over the next three years to support eligible small and medium enterprises (SMEs) across the continent.
Complying with Regulatory Requirements
This rights issue is in line with the Central Bank of Nigeria’s (CBN) revised minimum capital requirements for Nigerian commercial banks. UBA’s strong financial performance and its consistent dividend policy, which recently saw a 14.8% increase in annualized dividend yield, further demonstrate the bank’s resilience and ability to reward its shareholders.
In recognition of its outstanding performance, UBA was recently named “Bank of the Year” in 2023/2024 across eight of its subsidiaries in countries like Cameroon, Ghana, Côte d’Ivoire, Mozambique, and Tanzania. The bank has also won multiple accolades, including “World Best Frontier Markets Bank” and “Best SME Bank in Africa” in 2024.
How to Apply for UBA’s Rights Issue
Shareholders interested in participating in the rights issue can apply for their provisional allotment of new shares through the NGX e-offer portal during the offer period. Additionally, UBA customers who are shareholders can access their rights via the bank’s internet banking and mobile banking platforms.
The rights issue is part of UBA’s strategic plans to ensure long-term growth and continued industry leadership.
