UBA Allots 3.16bn Shares As Rights Issue Records Strong Investor Demand

United Bank for Africa Plc (UBA) has successfully completed its N50.00 per share rights issue, allotting a total of 3,156,869,665 ordinary shares to shareholders following strong demand during the offer period.

In a formal announcement on the Nigerian Exchange, the bank said the rights issue, offered on the basis of one new ordinary share for every thirteen existing shares held, attracted significant interest from shareholders. The offer opened on June 5, 2025, and closed on July 16, 2025.

Applications were received for about 6.41 billion ordinary shares, valued at approximately N317.8 billion, compared with the 3.16 billion shares initially offered. Due to oversubscription, the issue was scaled down, and only 100 per cent of the rights shares were allotted.

UBA explained that valid applications for 3,560,681,624 shares, amounting to N178.03 billion, were received, while invalid applications totaling about 586 million shares were rejected. Of the total valid applications, 3,155,781,211 ordinary shares were fully accepted, while partial acceptances were recorded for some shareholders due to the scale-back.

The bank also confirmed that rights traded on the Nigerian Exchange during the acceptance period, with more than 10.4 million rights exchanged at a total value exceeding N523 million.

Additionally, applications for approximately 2.56 billion additional shares were received under the additional shares category, valued at over N128 billion. However, only 1,088,605 additional shares were allotted, with the balance refunded in line with the terms of the offer.

The allotment has received clearance from the Securities and Exchange Commission (SEC). UBA noted that the allotted shares will be credited to shareholders’ Central Securities Clearing System (CSCS) accounts by January 16, 2026, while surplus subscription monies will be refunded accordingly.

The rights issue was managed by Vetiva Capital Management Limited as lead issuing house, with United Capital Plc and CardinalStone Partners Limited acting as joint issuing houses.

UBA stated that the capital raised from the exercise will strengthen its capital base, enhance capacity for business expansion, and support the bank’s long-term growth strategy across Africa and international operations.