Capital Market
UBA to Raise Over ₦157 Billion Through Rights Issue at ₦50 Per Share
United Bank for Africa Plc (UBA) has commenced the process to raise over ₦157 billion through a rights issue aimed at strengthening its capital base and supporting its long-term growth strategy.
According to a notice submitted to the Nigerian Exchange Limited (NGX) by the bank’s stockbrokers, United Capital Securities Limited, UBA has applied for the approval and listing of 3,156,869,665 ordinary shares of 50 kobo each, offered at ₦50.00 per share.
The rights issue will be offered on the basis of one new ordinary share for every thirteen ordinary shares held as of the close of business on Wednesday, July 16, 2025, which has been confirmed as the qualification date.
In an official statement signed by Godstime Iwenekhai, Head of Issuer Regulation Department at NGX, trading license holders were informed of the application, which marks one of the largest capital raise plans by a Nigerian bank in recent years.
The planned capital raise aligns with UBA’s broader strategic objectives, including capital adequacy enhancement, expansion into new markets, and technology infrastructure investment.
The bank’s move also reflects growing industry efforts to meet regulatory capital buffers and support anticipated Basel III compliance.
UBA reported a profit before tax of ₦803.73 billion for the 2024 fiscal year as strong core earnings and operational efficiency drove performance.
The rights issue is expected to consolidate this momentum and reinforce investor confidence in the group’s long-term performance outlook.
Analysts believe the rights issue pricing at ₦50 per share represents a premium valuation and reflects UBA’s strong fundamentals and investor appetite.
The proceeds from the offer are expected to be deployed across various strategic business segments and to further strengthen the group’s liquidity profile.
Market participants will closely monitor regulatory approval timelines and subscription uptake in the coming weeks as the offer proceeds through the formal listing and allotment process.
UBA, which operates in over 20 African countries and key financial centres globally, remains one of Nigeria’s most capitalised financial institutions and a key driver of financial inclusion and pan-African banking integration.