Recapitalisation: UBA Extends N157.84bn Rights Issue By 2 Weeks

United Bank for Africa (UBA) Plc has extended its ongoing N157.843 billion rights issue.

UBA stated this in a notice to the Nigerian Exchange, signed by the group company secretary/legal counsel, Bili Odum.

The bank hereby notifies its shareholders, the NGX, stakeholders, and the general public that the acceptance/application period for its ongoing rights issue, initially scheduled to close on September 5, 2025, has been extended by two weeks and will now close on September 19, 2025, following the receipt of approval from the Securities and Exchange Commission (SEC).

“This extension aims to provide shareholders additional time to fully exercise their rights and participate in the Rights Issue.  The Bank remains committed to ensuring that all shareholders are adequately carried along and can maximise the benefits of the rights issue.”

The company’s second equity issuance under its N400 billion Equity Shelf Programme, by way of a rights issue, is offering 3.157 billion new ordinary shares of 50 kobo each at N50.00 per share, on the basis of one new share for every 13 ordinary shares.

Also, the bank’s first equity issuance under the Programme closed on December 24, 2024, with a N239.4 billion rights issue achieved and a 104.8 per cent subscription level, which was subsequently scaled down to a 100 per cent allotment. This strong performance reflects significant investor confidence in UBA’s strategy and growth prospects.

UBA’s group chair, Tony Elumelu, stated that the rights issue intends to raise N157.8 billion in additional equity capital. This will enable the Bank to meet the new minimum capital requirements set by the Central Bank of Nigeria (CBN) while also supporting its strategic expansion plans and enhancing long-term shareholder value.

Looking ahead, he added that “this capital raise will enable the Bank to meet and exceed CBN’s recapitalisation directive and strengthen the Bank to deliver on its growth objectives.”

Elumelu urged the shareholders to take advantage of this investment opportunity and fully exercise their rights.

UBA’s unaudited financial results for the first quarter ended March 31, 2025, posted a robust pre-tax profit of N204.27 billion, representing a 30.65 per cent year-on-year growth from Q1 2024.

Net profit also saw a strong performance, with profit after tax rising 33.15 per cent to N189.84 billion, compared to N142.58 billion recorded in the same period last year.

The group’s gross earnings closed Q1 2025 at N764.31 billion, a significant increase of 34.05 per cent from N570.2 billion in Q1 2024. Interest income, which stood at N440.76 billion, grew by 36.09 per cent to N599.83 billion.