By Babajide Komolafe

United Bank for Africa, UBA Plc, has exceeded the N500 billion minimum capital requirement for banks with international authorisation, following the successful conclusion of its second Rights Issue, which added N157 billion to the bank’s capital base.

Vanguard investigations showed that at the end of the first half of 2025, UBA had a share capital and share premium of N350 billion, buoyed by N239.4 billion raised from its first Rights Issue in November 2024.

Consequently, the N157 billion generated from the second Rights Issue increased the bank’s total capital to N507 billion, above the N500 billion minimum required by the Central Bank of Nigeria, CBN, for banks with international authorisation.

The second Rights Issue offered 3,156,869,665 ordinary shares at N50 per share, on the basis of one new share for every thirteen existing shares held by shareholders on the register as of July 16, 2025.

Analysis showed that at the close of the offer on Friday, September 19, 2025, the bank received a total of 6,404 acceptances for 4,134,747,690 ordinary shares valued at N206.737 billion. Thus, the offer recorded a subscription level of 113 per cent.

However, a total of 568.666 million ordinary shares, amounting to N28.433 billion, were deemed invalid. Full acceptances accounted for 453.58 million shares, while partial acceptances totalled 135.27 million shares, resulting in 190.93 million shares being partially renounced.

Further analysis showed that a total of 2,568,006,215 shares were renounced and reallocated. Applications for additional shares amounted to 2.977 billion shares valued at N148.86 billion, out of which 2.568 billion shares valued at N128.4 billion were allotted, following a scale-down by one shareholder.

Investigations revealed that the allotment of the shares has been cleared by the Securities and Exchange Commission, SEC. The registrars to the Rights Issue, PAC Registrars and Investor Services Limited, will credit the Central Securities Clearing System, CSCS, accounts of allottees who indicated their CSCS account details on their acceptance forms with the allotted shares.

Beyond meeting regulatory requirements, the enlarged capital base is expected to further strengthen UBA’s balance sheet, enhance its capacity to absorb shocks and support business expansion across its African and global operations.

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