UBA PLC kicks off ₦157.8 billion rights issue, sets July 16 as qualification date

 United Bank Africa Plc (UBA) has launched its ₦157.8 billion Rights Issue, offering 3,156,869,665 ordinary shares of 50 Kobo each at ₦50.00 per share. The offer, which opened on July 30, 2025, and will close on September 5, 2025, targets existing shareholders, providing one new share for every 13 shares held as of July 16, 2025. 

This Rights Issue is the second phase of UBA’s ₦400 billion Equity Shelf Programme, aimed at meeting the Central Bank of Nigeria’s new minimum capital requirements.

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Unsubscribed shares by the closing date will be allotted on a pro-rata basis to shareholders requesting additional shares, per SEC regulations. Shareholders who do not fully take up their allotments risk dilution of their holdings. 

The net proceeds of approximately ₦154.7 billion, after deducting estimated offer costs of ₦3.1 billion (1.97% of gross proceeds), according to the offer circular is to be allocated as follows: 40% (₦61.9 billion) to expand the lending portfolio within 12 months, 30% (₦46.4 billion) for technology and digital transformation over 48 months, and 30% (₦46.4 billion) for business network expansion and upgrades over 48 months. UBA’s market capitalization is expected to rise from ₦2.05 trillion pre-issue to ₦2.21 trillion post-issue, assuming full subscription.

The Rights Issue is supported by key financial and legal institutions. Vetiva Capital Management Limited serves as the Lead Issuing House, with United Capital Plc and CardinalStone as Joint Issuing Houses. G. Elias acts as the Solicitor to the Issue, while TEMPLARS is the Solicitor to the Issuer. United Capital Securities Limited serves as the Stockbroker, PAC Registrars & Investor Services is the Registrar, and ProvidusBank is the Receiving Bank. EY as the Auditors.

If the proposed ₦157.8 billion Rights Issue is approved and successfully completed, UBA’s total capital raised through the shelf programme will enable it to exceed ₦500 billion, positioning the bank slightly above the CBN’s minimum capital requirement for banks with international licenses.