United Bank for Africa Plc is currently in the market seeking to raise about N157billion from its existing shareholders. The acceptance list of UBA rights issue of 3,156,869,665 ordinary shares at N50 per share opened on July 30 and it is scheduled to close on September 5.
The Offer is being made to existing shareholders on the basis of one (1) new ordinary share for every thirteen (13) ordinary shares held as at the close of business on July 16, 2025.
The lead issuing house is Vetiva Advisory Services Limited while United Capital Plc and CardinalStone Partners Limited are the join issuing houses. UBA’s share capital shows 41,039,305,642 shares as issued and fully paid-up share capital, while 3,156,869,665 ordinary shares are now being issued by way of rights issue to existing shareholders.
Further look at the Rights Circular shows that the use of the issue proceeds. The net issue proceeds of N154.737billion following the deduction of the estimated offer costs of N3.106billion (representing 1.97 percent of gross issue proceeds), shall be applied as follows: expansion of lending portfolio (N61.894billion or 40 percent of the net issue proceed) – this is to be completed in 12 months; technology and digital transformation (N46.421billion or 30 percent of the net issue proceed) – this is to be completed in 48 months. Business network expansion and upgrade (N46.421billion or 30 percent of the net issue proceed) – this is to be completed in 48 months.
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UBA’s strategic goal is to be a dominant leader in all the markets and geographies where it operates, to be the payment rail for funds and trade flows into and out of Africa, and to be present in key global financial centres to foster the African reach.
This Rights Issue represents the second tranche under UBA’s N400 billion Equity Shelf Programme (ESP), which was duly registered with the SEC. The Programme is designed to ensure compliance with the new minimum capital requirements stipulated by the Central Bank of Nigeria (CBN), while also supporting UBA’s strategic expansion objectives and long-term value creation for shareholders.
UBA operates in 20 African countries and 4 international financial centres. Its African operations are: UBA Ghana Limited; UBA Cameroun (SA); UBA Cote d’Ivoire; UBA Liberia Limited; UBA (SL) Limited; UBA Uganda Limited; UBA Burkina Faso; UBA Benin; UBA Kenya Bank Limited; UBA Chad (SA); UBA Senegal (SA); UBA Tanzania Limited; UBA Gabon; UBA Guinea (SA); UBA Congo DRC (SA); UBA Congo Brazzaville (SA); UBA Mozambique (SA); UBA Mali; UBA Zambia Limited and UBA Plc (Nigeria). The International operations are: UBA America, UBA UK, UBA France, and UBA United Arab Emirates.
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The share price of United Bank for Africa Plc stood at N47.95 as at August 25. At that price, though a decline as against N48 it traded on August 15, the bank’s share price still nears its 52-week high of N50.55. The stock had exchanged at a 52-week low of N21.9. UBA’s market capitalisation at rights issue price (pre-issue: N2.051trillion); post-issue (assuming full subscription): N2.209trillion. UBA’s issued and paid-up shares are listed on the NGX.
Ordinary shares that are not taken up by the closing date of the Rights Issue will be allotted to shareholders who apply for additional shares on a pro-rata basis, that is all subscribers will be allotted an equal proportion of the amount applied for, in line with SEC Rules.
Accordingly, the shareholders of UBA who do not accept their allotment in full may have their shareholding in the bank diluted. The Rights will be tradable on the NGX between July 30, 2025 and September 5, 2025 at the price at which the Rights are quoted on the NGX.
According to the Rights Circular, an application has been made to the NGX for the admission of 3,156,869,665 Ordinary Shares being offered by way of Rights Issue to its Daily Official List.
“As of December 31, 2024, the bank’s indebtedness stood at N1.223trillion in the ordinary course of business. This represents total borrowings from external parties,” the Rights Circular shows.
At its meeting which held on Thursday, August 14, the Board of United Bank for Africa Plc considered and approved the 2025 half-year (H1) audited accounts and financial statements of the bank for the period ended June 30. The Board also approved an interim dividend for the period, subject to the approval of the Central Bank of Nigeria (CBN).
The bank said on August 20 that it has requested for an extension of the publication of the half-year audited financial statements from the Nigerian Exchange Limited (NGX) and obtained approval to publish same on or before September 30, 2025.
Its audited financial results for the full year (FY) ended December 31, 2024 with all its major indicators witnessing significant improvement. Looking at the 2024 financials at the Nigerian Exchange Limited (NGX), it showed an impressive increase in UBA’s profit after tax (PAT) which went up by 26.14 percent to close the year at N766.6 billion, up from N607.7 billion recorded at the end of the 2023 fiscal year.
Also, UBA’s gross earnings grew significantly from N2.08trillion recorded at the end of the 2023 financial year to N3.19trillion in 2024, representing a 53.6 percent growth.
The banks’ total assets also rose remarkably by 46.8 percent, from N20.65 trillion in 2023, to close at N30.4 trillion in December 2024; signifying a milestone leap for the bank with the largest spread across the continent.
Despite the highly challenging global economic and business environment, UBA recorded a profit before tax (PBT) of N803.72 billion representing a 6.1 percent increase from N757.68 billion recorded at the end of the 2023 financial year. Likewise, UBA Group shareholders’ funds rose from N2.030 trillion as at December 2023 to close the 2024 financial year at N3.419 trillion, achieving an impressive growth of 68.39 percent.
In the first three months of 2025, United Bank for Africa reported an after-tax profit of N189 billion maintaining a steady rise for the past six years.
United Bank for Africa Plc is a pan-African banking group headquartered in Lagos, Nigeria with 75 years of operational excellence. The bank’s primary strategy is to focus on the customer, and this informs its Customer First (C1st) philosophy,
which ensures that the bank always puts its customers first. UBA achieves this through the deployment of three key levers – people, process, and technology – to give its customers the best offerings and services.
The bank’s business strategy is built on being the bank of choice for individuals and businesses across the African continent and for those who wish to do business in Africa. UBA emphasises the core values of enterprise, execution, and excellence and aims to be the leading financial services institution as well as the undisputed sustainable financial institution in Africa.
At the 63rd Annual General Meeting of United Bank for Africa Plc held on April 25, 2025 in Abuja, the shareholders approved among others that a final dividend of N102.598 billion gross in respect of the year ended December 31, 2024, be paid to all shareholders whose names appeared in the register of members at the close of business on Friday, April 11, 2025.
