By Stanley Onyeka, Lagos
United Bank for Africa (UBA) Plc is seeking to raise additional N239.4billion through the offer of 6,839,884,274 ordinary shares of 50 kobo each at N35 per share in a rights issue.
The rights issue, which opened on Friday, targeted toward meeting the minimum capital requirement stipulated by the Central Bank of Nigeria (CBN) in March for banks operating in the country.
The offer allows existing shareholders to purchase one new ordinary share for every five existing ordinary shares held by shareholders as of November 05, 2024.
Announcing the rights issue in a letter to the shareholders, UBA Group Chairman, Tony Elumelu, recalled that following shareholders’ resolution at the Annual General Meeting held in May, authorising the establishment of the N400billion Equity Shelf Programme, UBA will embark on a Rights Issue, as the first step in its broader capital raising programme.
Mr. Elumelu said: “UBA’s Rights Issue aims to raise N239.4bn, through the issuance of new ordinary shares to our shareholders.
“The primary objective of this rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry.” in the letter.
He explained that the proceeds realized will go beyond regulatory compliance and will also be used to expand the Group’s lending capacity, invest in digital infrastructure, support sustainable business practices, and expand the group’s African operations.
The primary objective of this rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry.
Also highlighting how UBA is driving economic growth across Africa, Mr. Elumelu said: “Our historic partnership with the Africa Continental Free Trade Area Secretariat, where UBA pledged up to $6billion in financing over the next three years to support eligible SMEs across Africa underscores our commitment to fostering economic development.”
Application for the provisional allotment of the Rights to the new ordinary shares will be made exclusively through the NGX e-offer portal during the offer period.
Existing shareholders may also apply for additional shares above their provisional allotment as described in the Provisional Allotment Letter.
Shareholders who are customers of the Bank are also encouraged to access their Rights through UBA’s internet banking and mobile banking channels.
At the end of the third quarter, UBA gross earnings rose by 83.2% year-on-year to N2.39trillion from N1.31trillion. Pre-tax profit also appreciated by 20.2% to N603.48billion from N502.09billion in Q3 2023, while post-tax profit increased by 16.9% to N525.31billion from N449.26billion recorded a year earlier.
Total assets rose to N31.80trillion (+54%) over the N20.65trillion recorded at the end of December 2023.
