In order to raise N239.4 billion to meet the Central Bank of Nigeria’s new capitalization requirement, United Bank for Africa issued 6,839,884,274 ordinary shares of 50 kobo each at a price of N35 per share through a rights issue, according to Tony Elumelu, the bank’s group chairman.
Elumelu informed the shareholders of the development in a letter.
According to the billionaire, the rights issue, which went live on Friday, enables current shareholders to buy one additional ordinary share for every five that they now own as of November 5, 2024.
He pointed out that the correct issue arises when the group’s shareholders approved the creation of the N400 billion Equity Shelf Program at the Annual General Meeting in May 2024. The first phase of UBA’s larger capital-raising initiative will be a rights issuance.
By issuing new common shares to our shareholders, UBA’s Rights Issue seeks to raise N239.4 billion. “This rights issue’s main goal is to further enhance our ability to seize expansion opportunities and maintain our position as leaders in the banking sector,” Elumelu stated in the letter.
In an effort to strengthen the nation’s banking industry and reach a $1 trillion economy, the apex bank of Nigeria increased the capital requirements for all Nigerian banks in late March 2024.
