UBA extends N157.8bn rights issue deadline to Sept 19

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United Bank for Africa (UBA) Plc has extended the application period for its ongoing N157.84 billion rights issue, giving shareholders two additional weeks to participate in the offer.

In a notice to the Nigerian Exchange (NGX) signed by the Group Company Secretary/Legal Counsel, Bili Odum, the bank disclosed that the acceptance period, earlier scheduled to close on September 5, 2025, will now run until September 19, 2025. The extension, it said, followed approval from the Securities and Exchange Commission (SEC).

According to the statement, the extension is intended to allow shareholders more time to exercise their rights and maximise participation in the offer. “The Bank remains committed to ensuring that all shareholders are adequately carried along and can fully benefit from the rights issue,” it noted.

The ongoing transaction marks UBA’s second equity issuance under its N400 billion Equity Shelf Programme.

By way of the rights issue, the bank is offering 3.157 billion new ordinary shares of 50 kobo each at N50 per share, on the basis of one new share for every 13 ordinary shares held.

UBA had successfully completed the first tranche of the programme in December 2024, raising N239.4 billion with a 104.8 percent subscription level, later scaled down to 100 percent allotment. The oversubscription, analysts said, reflected strong investor confidence in the bank’s strategy, regional footprint, and growth potential.

Meeting CBN’s recapitalisation target

Group Chairman, Tony Elumelu, explained that the fresh capital raise is part of UBA’s deliberate effort to meet the Central Bank of Nigeria’s (CBN) new minimum capital requirements for banks. The apex bank’s recapitalisation directive, announced earlier in 2024, mandates lenders to shore up their capital bases to strengthen the financial system.

Elumelu said the N157.8 billion offer will not only help UBA exceed the new regulatory threshold but also support its growth agenda and create long-term value for shareholders. “This capital raise will enable the bank to meet and surpass the recapitalisation directive while positioning us to deliver on our expansion plans and future growth objectives,” he stated, urging shareholders to take advantage of the offer.

Robust financial performance

UBA’s recent financial performance has further boosted investor sentiment around the rights issue. The lender reported a pre-tax profit of N204.27 billion for the first quarter of 2025, representing a 30.65 percent increase compared to N156.3 billion in Q1 2024.

Profit after tax also rose 33.15 percent to N189.84 billion, up from N142.58 billion in the same period last year. Gross earnings surged to N764.31 billion, a 34 percent jump from N570.2 billion in Q1 2024, while interest income climbed by over 36 percent to N599.83 billion.

Analysts note that these results underline the bank’s resilience, efficient risk management, and strong earnings capacity across its pan-African operations.

With the extension of the rights issue window, analysts say UBA is well positioned to attract significant shareholder participation, leveraging both its strong fundamentals and investor-friendly capital strategy.

The bank’s recapitalisation drive is expected to enhance its liquidity buffer, strengthen compliance with regulatory thresholds, and enable it to expand lending capacity in Nigeria and across its 20 African subsidiaries.