Oversubscribed Rights Issue Lifts UBA Past ₦500bn Recapitalisation Mark

United Bank for Africa (UBA) has crossed the Central Bank of Nigeria’s ₦500 billion recapitalisation benchmark following the successful completion of its recently concluded rights issue

Oversubscribed Rights Issue Lifts UBA Past ₦500bn Recapitalisation Mark

United Bank for Africa (UBA) has crossed the Central Bank of Nigeria’s ₦500 billion recapitalisation benchmark following the successful completion of its recently concluded rights issue, findings have shown.

The rights issue, which offered 3.16 billion ordinary shares of 50 kobo each at ₦50.00 per share on the basis of one new share for every 13 held, was oversubscribed by 13 percent, reflecting strong shareholder appetite and institutional confidence in the bank’s balance sheet strategy.

Although total applications were received for 3.57 billion shares valued at ₦178.3 billion, the final allotment was scaled down to 3.16 billion shares worth ₦157.84 billion, in line with regulatory approvals and a voluntary adjustment by a major shareholder.

Investigations indicate that the transaction builds on an already solid capital position, as UBA with busines leader Tony Elumelu as Chairman entered the exercise with ₦350 billion in shareholders’ funds, made up of paid-up capital, share premium, retained earnings and reserves.

When the net proceeds of the rights issue are added to this existing base, the bank’s total capital comfortably exceeds the ₦500 billion threshold required under the ongoing banking sector recapitalisation exercise, positioning UBA among the early movers ahead of the March 2026 deadline.

Analysis of the acceptance data shows that demand was driven largely by large shareholders and institutional investors.

One shareholder category accounted for more than 78 percent of the total shares allotted, translating to about ₦123.8 billion in value, underscoring deep-pocketed support for the transaction.

Additional shares requested totalled 2.98 billion units, exceeding the volume of renounced shares available, leading to a full absorption of 2.57 billion renounced shares through the additional allotment process.

Findings further reveal that the rights issue recorded 6,404 valid acceptances, with minimal reliance on traded rights during the acceptance period, suggesting that most shareholders opted to directly take up their entitlements rather than exit.

The transaction structure also reflected a disciplined approach, with invalid applications amounting to ₦28.4 billion screened out in line with the offer terms.

Market watchers say the outcome significantly strengthens UBA’s capital position at a time when Nigerian lenders are racing to shore up balance sheets to support larger risk assets, regional expansion and increased lending to the real economy.

With the rights issue fully allotted and cleared by the Securities and Exchange Commission, the bank is expected to complete the crediting of allotted shares and the refund of surplus subscription monies in January 2026.

Investigations suggest that the successful execution of the rights issue not only enhances UBA’s regulatory standing but also reinforces investor confidence in its long-term growth strategy, particularly its pan-African operations and earnings resilience, as the recapitalisation drive continues to reshape Nigeria’s banking landscape. Read More