UBA Extends ₦157.8bn Rights Issue By Two Weeks After SEC Approval

United Bank for Africa Plc (UBA) has announced a two-week extension of its ongoing ₦157.84bn rights issue, following approval from the Securities and Exchange Commission (SEC).

The subscription period, which was initially scheduled to close on Friday, September 5, 2025, will now end on Friday, September 19, 2025.

The extension is aimed at providing shareholders more time to exercise their rights and fully participate in the capital raising programme, the bank disclosed in a notice filed with the Nigerian Exchange Limited (NGX).

UBA is offering 3,156,869,665 ordinary shares of 50 kobo each at ₦50.00 per share to existing shareholders on the basis of one new share for every 13 held as at the close of business on July 16, 2025. If fully subscribed, the issue will raise the bank’s issued and fully paid-up share capital to 44.20 billion ordinary shares of 50 kobo each.

This marks the second tranche of UBA’s ₦400bn Equity Shelf Programme registered with the SEC. The bank previously raised ₦239.4bn in December 2024 under the programme, achieving a 104.8 per cent subscription level before scaling back to a 100 per cent allotment.

According to the rights circular, UBA plans to channel 40 per cent of the net proceeds — about ₦61.89bn — into expanding its lending portfolio over the next 12 months.

Another 30 per cent, or ₦46.42bn, will be allocated to business network expansion and upgrades, while an equal amount will fund technology and digital transformation initiatives over the next four years.

The rights issue is part of UBA’s strategy to meet the new minimum capital requirements recently introduced by the Central Bank of Nigeria (CBN). The CBN directive mandates banks to significantly boost their capital base to strengthen financial system stability and support economic growth.

UBA said the fresh capital will also reinforce its expansion drive across Africa and beyond, as well as enhance long-term shareholder value.

UBA Chairman Tony Elumelu, in a letter to shareholders, expressed optimism that the current offer will replicate the success of the first tranche, citing strong investor confidence in the group’s strategy.

“The first equity issuance under the programme closed on December 24, 2024, with a ₦239.4bn rights issue achieved and a 104.8 per cent subscription level. Such performance reflects significant investor confidence in UBA’s strategy and growth prospects,” Elumelu noted.

He added that the fresh capital raising “will enable the bank to meet the new minimum capital requirements set by the Central Bank of Nigeria, while also supporting its strategic expansion plans and enhancing long-term shareholder value.”

Market watchers expect robust subscription levels given UBA’s strong growth trajectory, regional expansion plans, and the increasing demand for digital banking services.

Analysts also view the capital raise as a crucial step in aligning with regulatory requirements while positioning the bank for long-term competitiveness in the Nigerian and African banking landscape.

UBA Extends ₦157.8bn Rights Issue By Two Weeks After SEC Approval is first published on The Whistler Newspaper