United Bank for Africa (UBA) Plc is set to deepen its global presence by investing in key financial hubs, including the United Kingdom (UK), the United States of America (USA), France, and the United Arab Emirates (UAE).
This move, announced by the Group Chairman, Mr. Tony Elumelu, aims to enhance the bank’s international operations and diversify its revenue streams, building on the over 50 percent of earnings currently contributed by its African subsidiaries outside Nigeria.
UBA is conducting a rights issue, offering 6.84 billion ordinary shares of 50 kobo each at N35 per share to raise N239.4 billion. This offer, which is scheduled to close on December 24, 2024, is pre-allotted on the basis of one new ordinary share for every five ordinary shares held as of November 5, 2024. The proceeds from the rights issue are earmarked for investments in digital technologies, organic expansion, and strengthening the bank’s international and local operations.
According to Mr. Elumelu, this initiative will reinforce UBA’s position as a leader in pan-African banking while rewarding its stakeholders. He highlighted the bank’s extensive footprint across 19 African countries outside Nigeria and reaffirmed its commitment to additional investments in these operations, as well as exploring new growth opportunities. The bank’s expansion is aligned with its vision to empower African businesses, expand its geographical reach, and contribute to the continent’s economic transformation.
In addition to meeting the Central Bank of Nigeria’s (CBN) new capital requirements, the rights issue will enable UBA to extend more credit to small and medium enterprises (SMEs). Mr. Elumelu emphasised the bank’s intention to strengthen partnerships with telecommunications companies and fintech firms, leveraging technology to advance intra-African trade, remittances, and payment systems.
Through these efforts, UBA aims to foster an enabling environment for businesses, enhance cross-border transactions, and drive regional economic growth and integration. The bank’s ultimate goal is to solidify its position as the leading financial institution in Africa, supporting the continent’s development, growth, and prosperity.
Mr. Elumelu, emphasised that the primary goal of the rights issue is to bolster the bank’s leadership as a pan-African financial institution while delivering substantial value to its stakeholders. According to him, this strategic financial move ensures that shareholders continue to benefit from an innovative and resilient banking group that prioritises sustainable growth and profitability.
Over the past five years, UBA has delivered an impressive 375 percent capital gain to its investors, surpassing the average returns in the Nigerian stock market and outperforming the financial services sector. The bank has also cemented its position as a leader in dividend payouts, offering one of the highest yields in the market with an interim dividend of N2 per share.
Retail shareholders have expressed strong support for the rights issue, citing the bank’s consistent financial success and its investor-centric approach. Mr. Elumelu noted that the funds raised would be directed toward fostering organic growth within Nigeria and across its international markets, including the recent milestone agreement to commence full banking operations in France.
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