United Bank for Africa (UBA) Plc would issue 6,839,884,274 ordinary shares of 50 kobo each at a price of N35.00 apiece in order to raise N239.4 billion.
One new ordinary share is being offered for every five existing ordinary shares held by shareholders as of November 05, 2024. The rights issue, which opened on Friday, November 15, 2024, allows current shareholders to buy more shares proportionate to their current holdings.
Tony Elumelu, the group chairman of United Bank for Africa, wrote to the shareholders to inform them that UBA will launch a rights issue as the first phase of its larger capital raising program after the group’s shareholders approved the creation of the N400 billion Equity Shelf Program at the Annual General Meeting in May 2024.
“UBA’s Rights Issue plans to raise N239.4 billion by issuing new Ordinary Shares to its shareholders. 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.
Beyond regulatory compliance, Elumelu explained, the money will be used to support sustainable business practices, increase the group’s lending capacity, invest in digital infrastructure, and grow its activities in Africa.
Elumelu further emphasised how UBA is propelling Africa’s economic expansion. “Our historic partnership with the Africa Continental Free Trade Area (AfCFTA) Secretariat, where UBA pledged up to US$6 billion in financing over the next three years to support eligible SMEs across Africa underscores our commitment to fostering economic development.”
The issue complies with the updated minimum capital requirements for Nigerian commercial banks that were previously announced this year by the Central Bank of Nigeria (CBN), the country’s top banking regulator.
As seen by the group’s impressive financial results and recent industry awards, UBA has continuously shown development and resilience.
UBA has proven its ability to regularly reward shareholders through its progressive dividend policy, which has seen an increase in annualised dividend yield of 14.8%.
In 2023–2024, UBA won the Regional Award for Africa and the “Bank of the Year” Awards in eight of its subsidiaries: Cameroon, Chad, Ghana, Cote d’Ivoire, Mozambique, Republic of Congo, Sierra Leone, and Tanzania. It earned Best SME Bank Africa and World Best Frontier Markets Bank in 2024.
Existing shareholders may also apply for additional shares above their provisional allotment as specified in the Provisional Allotment Letter, but during the offer period, applications for the provisional allotment of the rights to the new ordinary shares will only be accepted through the NGX e-offer portal. Through UBA’s online and mobile banking platforms, shareholders who are Bank customers are also encouraged to exercise their rights.
United Bank for Africa Plc is a significant Pan-African financial institution, serving over 45 million customers through 1,000 business offices and consumer touch points in 20 African nations.
Through retail, commercial, corporate, and institutional banking, as well as cutting-edge cross-border payments and remittances, trade finance, and associated banking services, UBA is bringing people and businesses together throughout Africa and the world. The company has a distinctive international presence in New York, London, Paris, and Dubai.
