UBA Seeks to Raise N157bln through Rights Issue

United Bank for Africa Plc has announced plans to raise over N157 billion through a rights issue, according to a notice on Wednesday to trading license holders by the Nigerian Exchange Limited.

The bank has submitted an application for the approval and listing of 3,156,869,665 ordinary shares of 50 kobo each at N50.00 per share.

Persecondnews reports that the offer is on the basis of one new ordinary share for every thirteen ordinary shares held as of the close of business on Wednesday, July 16, 2025, which has been confirmed as the qualification date.

This move is part of the bank’s strategy to raise capital and further strengthen its financial position.

UBA has reported a profit before tax of N803.73 billion for the 2024 financial year, driven by solid core earnings and improved operational efficiency.

This impressive performance underscores the bank’s resilience and commitment to delivering value to its stakeholders.

The Nigerian Exchange Limited has notified trading license holders of the bank’s application, with Godstime Iwenekhai, Head of Issuer Regulation Department at NGX, said: “Trading License Holders are hereby notified that United Bank for Africa Plc has through its Stockbrokers, United Capital Securities Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a Rights Issue.”

The rights issue is expected to further enhance the bank’s capital base and support its growth initiatives.

Persecondnews recalls that UBA Plc took a significant step in digital innovation by enabling its Artificial Intelligence chatbot, LEO, to carry out cross-border payment transactions.

This development makes LEO Africa’s first AI-powered chatbot to facilitate cross-border payments, offering customers a seamless and instant way to transfer funds across the continent.

Commenting on the milestone, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said: “The introduction of cross-border payments on LEO, in partnership with PAPSS, reflects our commitment to digital innovation, Pan-African integration, and customer-centric banking.

“This is not just a banking upgrade; it is a bold leap into the future of African finance.”

This innovation leverages the Pan-African Payment and Settlement System (PAPSS), allowing individuals, traders, and corporates to transfer money in local currencies between African countries where the Central Bank has approved PAPSS operations.

The UBA PAPSS Instant Payment through LEO offers several benefits, including instant payments within a few seconds, availability via self-service channels, lower transaction processing fees, and zero charges on the beneficiary.

This development is a testament to UBA’s commitment to pushing boundaries and delivering services that meet the needs of today’s Africa.