Recapitalisation: UBA Extends Deadline For Rights Issue

The United Bank for Africa (UBA) has extended the closing date for its rights issue by two weeks.

The rights issue, which was originally scheduled to close on 5 September 2025, has been shifted to 19 September 2025.

This was contained in a notice to the Nigerian Exchange Limited and the investing public. According to the bank, the notice followed approval from the Securities and Exchange Commission (SEC).

UBA explained that the extension is intended to provide shareholders with additional time to fully exercise their rights and participate in the rights issue, underscoring the bank’s commitment to ensuring all shareholders are adequately carried along and can maximize the benefits of the offer.

Details of the Rights Issue

The bank offered Rights Issue of 3,156,869,665 ordinary shares of 50 Kobo each at ₦50.00 per share on the basis of 1 new Ordinary Share for every 13 Ordinary Shares.

This Rights Issue represents the second issuance under the ₦400 billion Equity Shelf Programme approved by the SEC. The target amount to be raised is approximately ₦157.84 billion.

The first tranche, which closed in December 2024, raised ₦239.4 billion through a rights issue priced at ₦35 per share and was oversubscribed by 104.8 per cent.

The rights issue is part of UBA’s efforts to strengthen its capital base in compliance with the Central Bank of Nigeria’s (CBN) recapitalization directive, which requires commercial banks with international authorization to increase their capital base to ₦500 billion.

Additionally, the capital raised will support the bank’s strategic expansion plans and enhance long-term shareholder value.

The pan-African bank, with over 75 years of existence, has continued to record strong financial performance. In the 2024 financial year, it recorded 50 per cent year-on-year growth in total assets to ₦30 trillion, 26 per cent (YoY) increase in its Profit After Tax to ₦766 billion, and declared a total dividend of ₦5.00 per share, surpassing the ₦2.80 total dividend declared in the previous year.