United Bank for Africa (UBA) Plc has announced a groundbreaking plan to raise ₦239.4 billion through a rights issue of 6,839,884,274 ordinary shares, priced at ₦35.00 per share. The initiative, set to commence on Friday, November 15, 2024, allows existing shareholders to purchase additional shares at a 5:1 proportion. For every five shares held as of November 06, 2024, shareholders can acquire one new share.
Strengthening UBA’s Leadership
UBA Group Chairman, Tony Elumelu, in a letter to shareholders, emphasized that the rights issue aligns with a resolution from the May 2024 Annual General Meeting, authorizing the establishment of a ₦400 billion Equity Shelf Programme. The capital raised will fortify UBA’s position in the banking sector and support its expansion across Africa.
Elumelu outlined key objectives of the rights issue, including:
- Expanding lending capacity.
- Boosting investments in digital infrastructure.
- Supporting sustainable operations.
- Enhancing African regional growth.
Commitment to Economic Development
Highlighting UBA’s role in driving Africa’s economic growth, Elumelu referenced the bank’s partnership with the Africa Continental Free Trade Area (AfCFTA) Secretariat, pledging $6 billion over three years to support SMEs.
This capital raise also aligns with the Central Bank of Nigeria’s directive earlier this year, which mandated commercial banks to raise their minimum capital base to ₦500 billion.
Shareholder Benefits and Application Process
UBA has consistently rewarded shareholders, increasing dividend yields by 14.8% in 2023/2024 and receiving multiple prestigious awards across Africa and globally. Existing shareholders can apply for additional shares beyond their allotment through UBA’s internet banking and mobile channels. New participants will access the offer via the NGX e-offer portal.
Accolades and Financial Performance
UBA continues to solidify its status as a leading financial institution, evidenced by its strong financial performance and recognition as the ‘Bank of the Year’ in eight African countries, among other awards.
The rights issue positions UBA to seize growth opportunities, maintain its leadership, and further its mission of fostering economic development across Africa.
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