United Bank for Africa (UBA) Plc has successfully exceeded the Central Bank of Nigeria’s (CBN) N500 billion minimum capital requirement following the completion of its second rights issue share, which raised N157.84 billion.

The bank’s rights issue, which closed on September 19, recorded 113 per cent subscription, attracting 6,404 valid applications for 3.57 billion ordinary shares valued at N178.3 billion.

However, following a scale-down by shareholders, the final allotment stood at 100 per cent subscription. The rights issue offered 3,156,869,665 ordinary shares of 50 kobo each at N50 per share, based on one new ordinary share for every 13 ordinary shares held by shareholders as at July 16, 2025.

The breakdown of acceptances reveals strong participation across all shareholder categories. Full acceptances accounted for 6,293 applications for 453,578,211 ordinary shares valued at N45.6 billion, while 106 partial acceptances were received for 135,274,777 ordinary shares worth N6.76 billion.

A significant feature of the rights issue was the allotment of additional shares. Applications for additional shares totalled 2,977,218,174 ordinary shares valued at N148.86 billion.

However, following a request by a shareholder to scale down its application by 409,211,959 ordinary shares valued at N20.46 billion, a total of 2,568,006,215 additional shares worth N128.4 billion were ultimately allotted.

The largest shareholder bracket, comprising holders of 100 million shares and above, accounted for 78.46 per cent of the total allotment, receiving 2,476,961,309 shares valued at N123.85 billion.

The performance demonstrates the strong backing of institutional and major investors in the bank’s recapitalisation drive. Traded rights also featured in the exercise, with five transactions for 10,462 ordinary shares valued at N523,100 conducted on the floor of the Nigerian Exchange (NGX) during the acceptance period.

The bank’s registrars, PAC Registrars and Investor Services Limited, are expected to credit the Central Securities Clearing System (CSCS) accounts of successful allottees on or before January 16, while surplus subscription monies are to be returned by January 13.

Shareholders without CSCS accounts will have their shares credited using a Registrar Identification Number (RIN), in compliance with the SEC directive on dematerialisation of share certificates.

The successful completion of this rights issue positions UBA firmly within the CBN’s regulatory framework for bank recapitalisation, demonstrating the bank’s strong balance sheet and its ability to mobilise capital from shareholders. The oversubscription also reflects market confidence in UBA’s position as one of Africa’s leading financial institutions.