UBA to Raise ₦157 Billion via Rights Issue to Strengthen Capital Base
In a strategic move to reinforce its capital adequacy and power its pan-African growth ambitions, United Bank for Africa Plc (UBA) has announced plans to raise ₦157 billion through a rights issue, offering over 3.15 billion new ordinary shares to existing shareholders.
The tier-1 banking group disclosed this via an official notice to the Nigerian Exchange Limited (NGX), confirming that its stockbrokers, United Capital Securities Ltd., have submitted an application seeking approval for the offer and listing of the proposed shares.
Offer Details: 1-for-13 Rights at ₦50 Per Share
According to the filing, UBA will issue 3,156,869,665 ordinary shares of 50 Kobo each at ₦50.00 per share, under a rights ratio of one new share for every 13 ordinary shares held by qualifying shareholders.
The qualification date for the rights issue has been set for Wednesday, July 16, 2025, meaning shareholders on the register at the close of business on that date will be eligible to participate.
“The Rights Issue aligns with our strategic plan to fortify our capital base and position UBA for long-term sustainable growth,” the bank noted.
Capital Raise to Support Regional Growth and Regulatory Compliance
UBA’s planned capital raise comes amid intensified regulatory focus on capital adequacy in the Nigerian banking sector, following Central Bank of Nigeria’s recent push for banks to recapitalise in anticipation of higher systemic risks and growth financing needs.
The capital injection is expected to strengthen UBA’s balance sheet, enhance its lending capacity, and support its expansion drive across key African markets, where the bank maintains operations in 20 countries outside Nigeria.
UBA recently reported a Profit Before Tax (PBT) of ₦803.73 billion for the 2024 financial year, buoyed by strong core earnings, FX revaluation gains, and improved cost discipline — a performance that underscores its resilience and operational strength amid macroeconomic headwinds.
NGX Confirms Filing and Awaited Approval
In a circular signed by Godstime Iwenekhai, Head of Issuer Regulation at NGX, the Exchange confirmed receipt of the application, stating:
“Trading License Holders are hereby notified that United Bank for Africa Plc (the Company), through its Stockbrokers, United Capital Securities Limited, has submitted an application to Nigerian Exchange Limited for the approval and listing of a Rights Issue of 3,156,869,665 ordinary shares of 50 Kobo each at ₦50.00 per share.”
The approval process is currently underway, and further information, including the opening and closing dates of the offer, will be released upon regulatory clearance.
BRANDECONOMY INSIGHT: Strategic Capitalization in a New Era of Banking
UBA’s rights issue reflects a broader trend among Nigerian banks, many of whom are recalibrating their capital structures in preparation for CBN’s new minimum capital requirements, rising interest rates, and expansion into digital banking and regional growth corridors.
For shareholders, the ₦50 offer price presents both a capital call and an opportunity to deepen their stake in one of Africa’s most systemically important banks, with a strong track record of performance, regional reach, and strategic foresight.
Bottom Line:
UBA’s ₦157 billion rights issue is more than a capital raise — it’s a signal of intent. With regulatory changes and continental competition heating up, UBA is arming itself with the liquidity, credibility, and balance sheet muscle to remain a dominant force in Africa’s evolving financial landscape.
Ask ChatGPT
Tools
