Retail Shareholders Support UBA’s N239.4 Billion Rights Issue

Shareholders have enthusiastically backed the United Bank for Africa (UBA) Plc’s N239.4 billion rights issue, which has seen strong interest from investors eager to purchase additional shares in the bank. The offer, described by retail shareholders as a valuable opportunity, allows existing shareholders to acquire 6.84 billion ordinary shares at N35 each, based on a one-for-five rights allocation....CONTINUE READING>>>

Retail shareholders across Nigeria’s leading associations have mobilized to support the rights issue, recognizing it as a chance to deepen their investment in a bank with a solid track record of delivering returns. UBA, which pays dividends biannually, recently announced an interim dividend of N2 per share—one of the highest payouts in the banking sector.

The rights issue is set to close on December 24, 2024, and has been pre-allocated to shareholders who held shares as of November 5, 2024. UBA’s decision to open up this rights offer reflects the bank’s ongoing commitment to its shareholders, allowing them to benefit from its growth and strong financial performance.

UBA’s reputation for delivering value to shareholders is also underscored by its past efforts to distribute shares from its non-banking subsidiaries, such as Transcorp Hotels, United Capital, and Transcorp Plc, allowing investors to receive dividends from those companies as well.

Prominent shareholders have expressed their confidence in UBA, emphasizing the bank’s long-standing history of favorable treatment toward investors. Sir Sunny Nwosu, founder of the Independent Shareholders Association of Nigeria (ISAN), praised UBA’s consistent performance, both in Nigeria and across its African subsidiaries, urging shareholders to take advantage of the rights issue.

Dr. Faruk Umar, president of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), highlighted the bank’s solid performance and its record-setting interim dividend. He encouraged shareholders to purchase their rights, noting that UBA’s affiliates, such as Transcorp and United Capital, have also shown strong results.

Shareholder leaders, including Adeleke Adebayo, Moses Igbrude, Bisi Bakare, and Boniface Okezie, also voiced their support for the rights issue, emphasizing that UBA’s track record of shareholder-friendly decisions and strong financial health makes the offer an attractive opportunity. Many shareholders are not only picking up their rights but are also requesting additional shares.

With nearly 280,000 shareholders, including a large proportion of retail investors holding between one and 10,000 shares, UBA’s rights issue is expected to be successful. The bank’s ongoing efforts to engage with and create value for its investors continue to build trust and support in the capital market.