UBA Prolongs Deadline for Rights Issue to Allow Wider Investor Participation

United Bank for Africa (UBA) has announced an extension of the deadline for its ongoing rights issue, giving shareholders additional time to subscribe and take advantage of the offer. The move underscores the lender’s commitment to inclusivity and transparency, while also aligning with its recapitalisation plans as directed by the Central Bank of Nigeria (CBN).

The rights issue, which is part of UBA’s broader capital-raising programme, seeks to bolster the bank’s capital base in response to new regulatory requirements and to position the institution for long-term growth. By extending the subscription window, UBA aims to ensure that shareholders who may have faced timing or logistical constraints have ample opportunity to participate in the offer.

UBA had launched the rights issue earlier in the year as a strategic step to strengthen its balance sheet, enhance operational resilience, and provide the financial flexibility needed to support expansion across its multiple markets. The extension was confirmed in a corporate disclosure to the Nigerian Exchange (NGX), where the bank emphasized that the adjustment was made in the interest of shareholders and in recognition of prevailing market conditions.

Market analysts welcomed the decision, describing it as a shareholder-friendly gesture that provides investors with more time to mobilise resources and make informed decisions. They noted that rights issues, by design, allow existing shareholders to maintain or increase their ownership stakes in a company, often at a discounted price compared to the market. By extending the deadline, UBA is ensuring broader participation while also reinforcing investor confidence in its recapitalisation drive.

The extension comes at a critical time for Nigeria’s banking sector, which has been under increased pressure to comply with the CBN’s new capital requirements. Earlier this year, the apex bank directed commercial banks to significantly raise their capital bases to strengthen the financial system, enhance stability, and position lenders to support the country’s economic transformation agenda.

For UBA, which operates in over 20 African countries and maintains a presence in Europe, the UK, and the US, the capital raise is central to its strategy of sustaining competitiveness and expanding its international footprint. The bank has consistently highlighted that a stronger capital base will not only support regulatory compliance but also drive growth in its retail, corporate, and digital banking segments.

UBA’s Group Managing Director, Oliver Alawuba, reiterated the bank’s long-term commitment to delivering value to stakeholders. He stressed that the capital raise through the rights issue will enable the bank to deepen its support for customers across Africa, finance large-scale infrastructure projects, and expand access to financial services for underserved communities. He added that the extension of the deadline reflects UBA’s philosophy of ensuring fairness, inclusivity, and alignment with the interests of shareholders.

In recent years, UBA has posted strong financial results, underpinned by robust revenue growth, rising profitability, and a growing customer base. Its diversified presence across multiple African markets has shielded the bank from localised risks, while its investments in digital banking have significantly enhanced customer experience and transaction volumes. Analysts believe that the ongoing capital raise, once fully subscribed, will provide the bank with the financial firepower to sustain its growth trajectory and further consolidate its leadership position.

Investor sentiment toward the rights issue has remained positive, given UBA’s solid fundamentals and track record of strong returns. By extending the deadline, the bank is likely to attract even greater participation, particularly from retail investors who may require additional time to organise their subscriptions. Institutional investors are also expected to take advantage of the opportunity, given the discounted pricing and UBA’s long-term growth prospects.

Beyond the recapitalisation exercise, UBA has positioned itself as a key player in supporting economic development across Africa. The bank has consistently financed infrastructure projects, supported trade flows, and promoted financial inclusion initiatives. Strengthening its capital base through the rights issue is therefore viewed as a strategic step not just for the institution but also for the broader economies in which it operates.

The Nigerian capital market has also welcomed the rights issue, seeing it as a boost to overall market activity and a reinforcement of investor confidence. Capital raises by leading banks like UBA are expected to deepen market liquidity, create new opportunities for investors, and contribute to the resilience of the financial system.

Looking ahead, analysts expect UBA to successfully conclude its rights issue following the extended deadline, noting that shareholder response so far has been encouraging. They added that the exercise is likely to set the stage for similar moves by other tier-one banks seeking to meet the CBN’s capital requirements within the stipulated timeline.

For shareholders, the extension provides a unique opportunity to strengthen their stakes in one of Africa’s most diversified and dynamic financial institutions. For UBA, it is another step toward securing the resources needed to continue delivering growth, innovation, and value creation in an increasingly competitive global banking environment.

By opting to prolong the subscription window, UBA has not only demonstrated responsiveness to shareholder needs but has also reinforced its image as a bank that prioritises inclusivity and transparency in its dealings. The success of the rights issue, once concluded, is expected to further solidify the bank’s financial position and provide the foundation for sustained growth across its diverse markets.