Onome Amuge
United Bank for Africa Plc (UBA) has officially listed 6,839,884,274 additional shares on the Nigerian Exchange (NGX), following a successful Rights Issue. This move is expected to boost the pan-African financial institution’s capital base and reinforce investor confidence.
The shares were offered at N35.00 per share, on the basis of one new share for every five held by shareholders as of November 5, 2024. This Rights Issue forms part of a broader programme to issue 34.2 billion ordinary shares of 50 Kobo each, strategically aimed at strengthening the bank’s capital adequacy, funding its extensive expansion initiatives, and investing in technology and infrastructure.
With this latest listing, UBA’s total issued and fully paid-up share capital has risen from 34,199,421,368 to 41,039,305,642 ordinary shares. The increase is seen as a strong indicator of robust investor participation and a clear vote of confidence in the bank’s long-term strategy.
UBA’s decision to opt for a Rights Issue is considered a deliberate move to preserve existing shareholders’ equity while broadening its capital base. The competitive offer price and transparent process have further reaffirmed the bank’s adherence to best practices and regulatory standards. Market analysts suggest that this capital expansion positions UBA for enhanced service delivery across its African operations, alongside supporting its digital transformation drive and overall growth objectives.
The listing comes at a time of increasing interest among Nigerian corporates in leveraging capital market instruments to fund their growth ambitions. UBA’s successful capital raise underscores the strength and efficiency of the Nigerian capital market in facilitating large-scale equity transactions.
As the market integrates the newly listed shares, analysts anticipate increased liquidity, deeper investor participation, and potential upside in UBA’s share price performance, driven by optimism surrounding the bank’s growth trajectory.
Beyond merely an increase in share capital, this listing reflects a deeper level of investor trust in UBA’s governance, strategic vision, and its pivotal role within the African banking landscape. With a now solidified capital foundation, UBA appears well-positioned to deepen its regional presence and continue delivering value to both shareholders and stakeholders.
