The United Bank for Africa Plc, UBA, has unveiled a strategic move to raise N157 billion through a rights issue, aimed at enhancing its capital position and supporting its long-term growth and expansion goals across Africa.
The announcement was made through an official notification to the Nigerian Exchange Limited (NGX) on Thursday.
According to the notice, UBA, through its stockbrokers United Capital Securities Ltd., has submitted an application to the NGX requesting approval and listing for the rights issue.
The proposed offering involves the issuance of 3,156,869,665 new ordinary shares at a nominal value of 50 Kobo per share, priced at N50.00 each.
The rights issue will be offered on the basis of one new ordinary share for every 13 existing shares held by shareholders as of the close of business on the qualification date, which has been set for Wednesday, July 16, 2025.
UBA stated that the capital raise initiative is part of its broader strategic efforts to fortify its financial base, enhance its resilience in an evolving macroeconomic environment, and position the bank for sustained growth.
The proceeds from the rights issue are expected to be deployed towards strengthening the bank’s balance sheet, supporting digital transformation, expanding lending capacity, and enhancing operations in key markets across the continent.
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Industry analysts see this move as a proactive step by UBA to meet evolving regulatory expectations, manage risk more effectively, and consolidate its competitive advantage in Africa’s fast-evolving financial services sector.
With growing opportunities in digital banking, fintech integration, and regional trade financing—especially under the African Continental Free Trade Area (AfCFTA)—a stronger capital base will provide UBA with the financial firepower needed to seize new growth opportunities.
The bank’s management has reiterated its commitment to value creation for shareholders. By offering existing shareholders the opportunity to purchase more shares at a discounted price, the bank aims to encourage investor participation and improve equity capital without incurring debt.
UBA, a pan-African financial institution with presence in 20 African countries and global operations in London, New York, Paris, and Dubai, has consistently delivered strong financial results and maintained a robust balance sheet. This rights issue marks a significant milestone in its mission to become Africa’s leading global bank.
Market observers will be watching closely as the NGX processes the application and trading license holders begin to respond to the offer. UBA’s move could also inspire similar recapitalization strategies by other tier-one banks in Nigeria, especially in light of the Central Bank of Nigeria’s evolving capital adequacy guidelines.
Once the NGX grants approval, a timetable for the rights issue—including offer opening and closing dates—will be released to the investing public.
NAN
