United Bank for Africa (UBA) Plc has disclosed plans to raise over N157 billion through a rights issue, according to a notice from the Nigerian Exchange (NGX) to trading license holders.
The notice, signed by Godstime Iwenekhai, Head of Issuer Regulation at NGX, revealed that UBA, through its stockbroker United Capital Securities Limited, submitted an application to list a rights issue of 3,156,869,665 ordinary shares of 50 kobo each at N50.00 per share.
According to the details, the offer will be made on the basis of one new share for every thirteen ordinary shares held as of the close of business on July 16, 2025.
The NGX circular reads:
“Trading License Holders are hereby notified that United Bank for Africa Plc has, through its stockbroker United Capital Securities Limited, submitted an application to the Nigerian Exchange Limited for the approval and listing of a Rights Issue of 3,156,869,665 ordinary shares of 50 Kobo each at N50 per share.”
This latest move is part of UBA’s broader strategy to shore up its capital base in line with the Central Bank of Nigeria’s (CBN) recapitalization directive.
It is similar to an earlier move in November 2024, when the bank sought NGX approval for a N239 billion rights issue priced at N35 per share.
A similar move
UBA had in early November 2024 announced plans to raise capital through a rights issue of 6,839,884,274 ordinary shares, each with a nominal value of 50 kobo and priced at N35.00 per share.
The offer, filed through its stockbroker United Capital Securities Limited, targeted proceeds of approximately N239.4 billion.
Investor response was strong, as the offer was oversubscribed with total subscriptions reaching N251 billion. However, in line with the offer terms, the bank accepted N240 billion, pushing its total capital base to N355.2 billion.
According to sources, UBA is expected to raise the remaining balance before the end of 2025, making the latest rights issue announcement a continuation of that capital-raising plan.
With a strong Q1 2025 performance, including solid growth in core earnings, the bank appears well-positioned to attract investors’ interest.
UBA Q1 performance
United Bank for Africa (UBA) Plc delivered solid results in the first quarter of 2025, posting a pre-tax profit of N204.27 billion, up 30.65% from the same period in 2024.
Net profit also grew strongly by 33.15%, reaching N189.84 billion, compared to N142.58 billion in Q1 2024.
A key driver of this performance was interest income, which rose 36.09% year-on-year to N599.83 billion. The breakdown shows:
- Income from loans and advances grew 31% to N260.56 billion, accounting for 43.44% of total interest income.
- Income from investment securities jumped 44.96% to N291.86 billion, making up 48.66% of the total.
- Income from cash balances rose 17% to N47.42 billion, contributing 7.9%.
UBA also recorded healthy non-interest income, led by fees and commissions. Notable figures include:
- Electronic banking income: N47.84 billion (+7.86%)
- Account maintenance fees: N10.39 billion (+11.09%)
