The rights issue, which began on Friday, will involve the issuance of 6.84 billion ordinary shares priced at N35 each. Shareholders will have the opportunity to acquire one new share for every five shares they currently hold, based on the record date of November 5, 2024.
UBA has indicated that this capital raise reflects its dedication to enhancing its lending capabilities, improving digital infrastructure, and positioning itself for ongoing growth in key markets.
In a communication to shareholders, UBA Group Chairman Tony Elumelu stressed that this capital raise is part of a larger N400 billion equity initiative, which was approved by shareholders during the bank’s Annual General Meeting in May.
Elumelu remarked, “UBA’s Rights Issue is set to generate N239.4 billion through the issuance of new Ordinary Shares to our shareholders. The main goal of this Rights Issue is to further enhance our ability to seize growth opportunities and maintain our leadership position in the banking sector.”
He noted that, in addition to meeting regulatory requirements, the funds will be utilized to increase the group’s lending capacity, invest in digital infrastructure, promote sustainable business practices, and expand operations across Africa.
Elumelu also pointed out UBA's role in driving economic growth throughout the continent.
He stated, “Our historic partnership with the Africa Continental Free Trade Area (AfCFTA) Secretariat, where UBA has committed to providing up to US$6 billion in financing over the next three years to support eligible SMEs across Africa, highlights our dedication to fostering economic development.”
Furthermore, Elumelu confirmed that the issuance aligns with the updated minimum capital requirements for Nigerian commercial banks set forth by the Central Bank of Nigeria (CBN) earlier this year.
He stated that UBA has consistently shown growth and resilience, as reflected in the Group's robust financial performance and recent accolades within the industry. The Group's progressive dividend policy, which has achieved a 14.8 percent annualized dividend yield, highlights its commitment to rewarding shareholders consistently.
In the 2023/2024 period, UBA received the "Bank of the Year" award across eight of its subsidiaries—Cameroon, Chad, Ghana, Côte d'Ivoire, Mozambique, Republic of Congo, Sierra Leone, and Tanzania—along with the Regional Award for Africa. In 2024, it was also recognized as the World Best Frontier Markets Bank and Best SME Bank in Africa.
Applications for the provisional allotment of Rights to the new ordinary shares will be submitted exclusively through the NGX e-offer portal during the offer period. Existing shareholders may also request additional shares beyond their provisional allotment, as outlined in the Provisional Allotment Letter. Shareholders who are also customers of the Bank are encouraged to utilize UBA’s internet banking and mobile banking platforms to access their Rights.