Recapitalization: UBA to Raise N157 Billion Through Rights Issue

United Bank for Africa (UBA) Plc has announced plans to raise over N157 billion through a rights issue, as disclosed in a notification by the Nigerian Exchange (NGX) to trading license holders.

The notice, signed by Godstime Iwenekhai, Head of Issuer Regulation at NGX, stated that UBA, through its stockbroker United Capital Securities Limited, has submitted an application to list a rights issue of 3,156,869,665 ordinary shares of 50 kobo each at N50 per share.

The offer will be made on the basis of one new share for every thirteen ordinary shares held by shareholders as of the close of business on July 16, 2025.

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This move is part of the bank’s broader strategy to boost its capital base in line with the Central Bank of Nigeria’s recapitalization directive. It follows a similar action in November 2024 when the bank raised N239 billion through a rights issue priced at N35 per share. That offer was oversubscribed, with N251 billion in total subscriptions, though the bank accepted N240 billion.

The new rights issue aims to raise the remaining capital required before the end of 2025. This capital-raising plan comes amid a strong performance by UBA in the first quarter of 2025.

In Q1 2025, the bank posted a pre-tax profit of N204.27 billion, representing a 30.65% increase from Q1 2024. Net profit rose by 33.15% to N189.84 billion compared to N142.58 billion in the same period last year.

Interest income also grew significantly, reaching N599.83 billion, driven by income from loans and advances, investment securities, and cash balances. The bank also saw growth in non-interest income streams such as electronic banking and account maintenance fees.

UBA’s strong financials and its proactive recapitalization strategy are expected to bolster investor confidence as it continues to position itself for sustained growth.