UBA launches rights issue to raise ₦157 billion through 3.15 billion new shares offering

The United Bank for Africa (UBA) has announced the commencement of a rights issue aimed at raising a substantial ₦157 billion through the issuance of 3.15 billion new ordinary shares to existing shareholders. This strategic move is part of the bank’s broader capital strengthening efforts as it positions itself for future growth, regulatory compliance, and expanded operations across Africa and beyond.

According to UBA, the rights issue has been structured to offer existing shareholders one new ordinary share for every three shares held as of the qualification date. Each share is priced at ₦50, making the total capital targeted from the exercise ₦157.5 billion. The offer period officially opened on July 8, 2025, and will run until August 15, 2025, during which shareholders are expected to exercise their rights by subscribing to the new shares on offer.

The bank, which operates in over 20 African countries and also maintains offices in the United Kingdom, the United States, France, and the United Arab Emirates, stated that the capital raised through this initiative will be channeled toward bolstering its capital adequacy ratio, funding expansion, enhancing digital banking capabilities, and supporting long-term infrastructure and commercial financing projects across key markets.

UBA’s Group Managing Director, Oliver Alawuba, described the rights issue as a proactive step aligned with the bank’s forward-looking strategy. He emphasized that strengthening the bank’s capital base is not only a regulatory requirement but a necessity in today’s evolving financial landscape marked by increasing competition, technological disruption, and dynamic customer needs.

“This rights issue is a bold move to consolidate UBA’s leadership position in the African banking industry,” Alawuba said. “We are focused on deepening our capacity to support economic development across our markets. With a stronger capital base, we will be better positioned to underwrite larger ticket transactions, fund critical sectors, and invest in technology that delivers superior service to our customers.”

The initiative comes at a time when the Central Bank of Nigeria (CBN) has mandated banks to improve their capital buffers to remain resilient in the face of macroeconomic challenges and the ongoing transition to Basel III capital requirements. Analysts see UBA’s offering as a timely response to these regulatory expectations, especially as the bank aims to maintain its status as one of Africa’s top-tier financial institutions.

UBA shareholders have responded positively to the announcement, with several institutional investors indicating their readiness to participate fully in the offer. The bank’s investor relations team disclosed that preliminary roadshows and engagement sessions with key stakeholders have shown strong interest, underscoring confidence in UBA’s performance track record and strategic direction.

Market analysts have noted that the pricing of the rights issue at ₦50 per share reflects a measured and attractive valuation, designed to incentivize participation while ensuring minimal dilution of shareholder value. In a statement, a Lagos-based investment advisory firm described the offer as “a well-calibrated capital raise anchored in long-term value creation.”

Proceeds from the issue are expected to support UBA’s ambitions in several high-growth African markets, particularly in areas such as trade finance, payments innovation, agricultural financing, infrastructure lending, and green banking initiatives. The bank has also reiterated its commitment to responsible banking, financial inclusion, and supporting small and medium-scale enterprises (SMEs) that form the backbone of African economies.

UBA’s rights issue will be managed by United Capital Plc as the lead issuing house. The transaction is also supported by a consortium of reputable financial advisers, solicitors, and receiving agents who will oversee compliance, documentation, and coordination throughout the offer period.

Industry observers say this rights issue not only strengthens UBA’s balance sheet but also sets the stage for other tier-one banks to consider similar capital mobilization exercises in the coming months. With Nigerian banks facing stricter prudential requirements and increasing demand for credit in infrastructure, agriculture, and industrial sectors, capital raising is becoming a strategic imperative.

Alawuba, in his remarks, assured shareholders that UBA remains committed to delivering strong returns and sustainable growth. “We see this rights issue as a partnership with our investors. Their support empowers us to chart a growth path that creates shared prosperity for all stakeholders,” he said.

As UBA embarks on this significant capital raise, attention now shifts to how the bank will deploy the fresh funds in executing its pan-African strategy, leveraging technology, and adapting to evolving customer needs in a competitive financial ecosystem. With its reputation for resilience, innovation, and sound governance, stakeholders are optimistic that UBA will not only meet its capital objectives but also deliver measurable impact across the continent.