The United Bank for Africa (UBA) Plc will utilise the net proceeds of its ongoing N239.4 billion Rights Issue to invest in additional digital technologies and business expansions that will strengthen the bank’s seven and half decades of impressive performance.

UBA is offering 6.84 billion ordinary shares of 50 kobo each to existing shareholders at N35 per share. The rights issue is pre-allotted on the basis of one new ordinary share of 50 kobo each to every five ordinary shares held as at November 05, 2024. The rights issue is scheduled to close on December 24, 2024.

Group Chairman of UBA, Mr. Tony Elumelu, said the primary objective of the ongoing Rights Issue is to strengthen the bank’s position as a pan-African banking industry leader and a highly rewarding institution for all stakeholders.

He said the group decided on the rights issue to ensure that shareholders continue to derive undiluted benefits from a stronger, more innovative and resilient pan-African banking group.

UBA had delivered 375 per cent capital gains to investors in nearly five years, outperforming the average returns at the Nigerian stock market and the entire financial services sector. The bank also holds the distinction of highest dividend payout by any bank and one of the three highest yields in the entire stock market with its interim dividend payout of N2 per share.

Retail shareholders have already expressed supports for the ongoing rights issue, citing the bank’s historical financial performance and investors’ friendly disposition.

Elumelu said the Rights Issue would enable the bank to drive organic expansion and business growth within and outside Nigeria, while strengthening its international operations. UBA recently signed agreement to commence full banking operations in France.

[Vanguard]