United Bank for Africa (UBA) Plc has launched a N239.4 billion rights issue, offering existing shareholders 6.84 billion ordinary shares at N35 per share. The offer, which opened on November 15 and closes on December 24, 2024, is structured as one new share for every five held as of November 5, 2024. Members of Nigeria’s minority investor community have pledged to participate actively, citing UBA’s history of shareholder-friendly policies and consistent dividends as strong incentives.
Key investor leaders and groups have praised UBA’s performance and the well-structured rights issue, with many stating they would fully take up their rights and encourage others to do the same. Shareholder advocate Sunny Nwosu highlighted UBA’s consistent dividend payouts and value creation for shareholders, describing the bank as a “good buy.” Similarly, Adeleke Adebayo and Dr. Faruk Umar lauded UBA’s stable leadership, strong financial results, and potential for significant price appreciation post-offer.
Investor confidence in UBA is further bolstered by its subsidiaries’ stellar performance, including Transcorp Hotels and Africa Prudential. Shareholder associations have committed to mobilizing members to take up the rights, with Mrs. Bisi Bakare emphasizing UBA’s track record of rewarding investors through dividends and capital gains. Many believe this rights issue underscores UBA’s dedication to strengthening shareholder trust and expanding its growth potential.
