|
Getting your Trinity Audio player ready...
|
United Bank for Africa (UBA) Plc plans to leverage the net proceeds from its N239.4 billion Rights Issue to enhance its digital capabilities and expand its operations, reinforcing the bank’s remarkable performance over the past 75 years.
UBA is offering 6.84 billion ordinary shares at N35 each to existing shareholders, with each share being valued at 50 kobo. The rights issue is allocated on the basis of one new share for every five ordinary shares held as of November 5, 2024. The rights issue will close on December 24, 2024.
Tony Elumelu, the Group Chairman of UBA, explained that the primary goal of the rights issue is to solidify the bank’s position as a leading pan-African banking institution while ensuring substantial returns for all stakeholders.
Elumelu emphasized that the rights issue was designed to allow shareholders to benefit from the continued growth of a more innovative and resilient pan-African banking entity. UBA has already delivered a 375% capital gain to investors over the past five years, significantly outperforming the broader Nigerian stock market and the financial services sector. The bank is also noted for its record dividend payouts, including the highest dividend by any bank and one of the top three dividend yields in the stock market, with an interim dividend of N2 per share.
Retail investors have shown strong support for the rights issue, citing the bank’s strong financial track record and its investor-friendly approach.
Elumelu further stated that the proceeds from the rights issue would facilitate organic growth and expansion both within Nigeria and internationally, with a particular focus on strengthening UBA’s global footprint. Recently, the bank signed an agreement to begin full banking operations in France.
