The Group Chairman of United Bank for Africa, Tony Elumelu, has announced that the bank has issued 6,839,884,274 ordinary shares of 50 kobo each at N35 per share in a rights issue to raise N239.4 billion to meet up with the fresh capitalisation requirement by the Central Bank of Nigeria.

Elumelu disclosed in a letter to shareholders informing them of the development.

The billionaire revealed that the rights issue, which opened on Friday, allows existing shareholders to purchase one new ordinary share for every five existing ordinary shares held by shareholders as of November 5, 2024.

He noted the right issue comes following the resolution of the group’s shareholders at the Annual General Meeting held in May 2024, authorising the establishment of the N400bn Equity Shelf Programme. UBA will embark on a rights issue as the first step in its broader capital raising programme.

“UBA’s Rights Issue aims to raise N239.4bn through the issuance of new ordinary shares to our shareholders. The primary objective of this rights issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry,” Elumelu said in the letter.

Recall that in late March 2024, the apex bank raised the capital requirements for all Nigerian banks in a bid to achieve a $1 trillion economy and strengthen the country’s banking sector.

How UBA plans to raise N239.4bn via right issues – Elumelu