Table of Contents
Key Points
- UBA’s rights issue involves 6,839,884,274 new ordinary shares at N35.00 per share on a 1-for-5 basis.
- The application, submitted through United Capital Securities Limited, marks a critical step in UBA’s capital-raising journey to support its operational goals.
- UBA’s stock has recently fluctuated between N29.00 and N35.05 on the NGX. The stock closed at N31.55 following a 9.99% drop in the latest trading session.
United Bank for Africa (UBA) has applied for regulatory approval from the Nigerian Exchange Limited (NGX) to initiate a $143.6 million (N239.4 billion) rights issue. This capital drive aims to enhance UBA’s financial base and support its expansive growth plans across Africa, aligning with its goal of strengthening its position as a top-tier pan-African bank.
Strengthening capital for expansion
The rights issue reflects UBA’s strategy to reinforce its capital reserves to fund significant expansion and strengthen its market presence across Africa. The proceeds will finance infrastructure and technological advancements, enabling the bank to better serve rising financial demands and to fund large-scale projects in line with its long-term growth vision. This capital boost is positioned to cement UBA’s standing as a competitive force in African banking.
Consistent financial performance
UBA’s financial performance in the third quarter of 2024 further highlights its resilience and profitability. The bank reported a $320.9-million profit over the first nine months of the year, demonstrating its consistent earnings and effective use of its network and digital capabilities.
Boosting shareholder value
The rights issue offers shareholders the chance to acquire additional shares at a set price, potentially enhancing long-term shareholder value. As UBA progresses with this capital raise and other strategic initiatives, stakeholders will closely monitor its impact on the bank’s financial strength and market footprint. This move is set to bolster UBA’s capacity to achieve its growth goals and sustain its influence in the African banking industry.
