UBA kicks off equity shelf program with N239.4 billion rights issue

 

UBA Group (UBA) has kicked off its ₦400 billion equity shelf program with a rights issue of 6,839,884,274 ordinary shares of 50 kobo each at N35.00 per share, amounting to N239.4 billion.

The Equity Shelf Programme (the programme) approved by shareholders in May, is to enable the Bank to raise an aggregate sum of ₦400 billion within three years (or more subject to regulatory approval), by issuing ordinary shares as may be required, either through public offers, rights issue, and private/special Placement to institutional investors and specific high net worth individuals.

UBA is embarking on this capital raise Programme to inject fresh capital into the Bank and address its capital shortfall in compliance with the regulatory capital threshold set by the apex banking regulator, the CBN. The Programme according to the bank will be implemented in series/takedowns, taking into cognizance prevailing market conditions and other relevant considerations. 

According to UBA, capital raise program is aimed at expanding the Bank's investor base, inviting both existing shareholders and new investors to participate in its offerings. Crucially, this capital infusion will enable the Bank to upgrade its technology infrastructure, enhance product designs, and optimize business operations across its various regions.

The Rights Issue, which opened on Friday, November 15, 2024, gives existing shareholders the opportunity to purchase additional shares in proportion to their current holdings and is being offered based on one new ordinary share for every five existing ordinary shares held by shareholders, as of November 05, 2024.

For the equity shelf program (including the rights issue), Law firms, TEMPLARS and G. Elias are acting as solicitors to issuer and transaction respectively. United Capital Plc act as stockbrokers, with EY as Auditors. Vetiva Capital Management Limited is acting as lead Fianacial adviser and issuing house.