Some members of the minority investor community in Nigeria have expressed their strong intention to exercise their rights in the ongoing N239.4 billion rights issue of United Bank for Africa (UBA) Plc.
UBA launched its rights issue on November 15, offering 6.84 billion new ordinary shares of 50 kobo each to existing shareholders at N35 per share. The issue is pre-allotted, with shareholders entitled to one new share for every five shares they held as of November 5, 2024. The rights issue is set to close on December 24, 2024.
Several shareholder groups have indicated they will encourage their members to fully take up their rights and, in some cases, acquire additional shares. Minority investors have praised UBA for its long-standing commitment to prioritizing shareholders’ interests, highlighting the bank’s history of delivering value through capital appreciation and dividends.
Sunny Nwosu, founder of the Independent Shareholders Association of Nigeria, emphasized UBA’s strong track record of positive shareholder engagement. “The bank is performing well, and so are its subsidiaries. From any angle, UBA is a solid investment. As a long-time shareholder, I can vouch for its commitment to prioritizing shareholders’ happiness,” Nwosu said. “Go back and check the bank’s dividend history and how it has handled shareholders’ issues over time. It’s a bank you can rely on. I’m advising all shareholders to take up their rights—it’s a great opportunity. We’re taking up ours and even asking for more.”
A shareholder activist and leader, Adeleke Adebayo, also expressed confidence in the rights issue, describing it as well-structured with minimal dilution and strong potential for increased earnings. “Given the bank’s positive outlook, I will be taking up my rights,” he stated.
President of the Association for the Advancement of Rights of Nigerian Shareholders, Faruk Umar, praised the rights issue as a reflection of the ongoing trust between UBA and its shareholders. He noted the bank’s solid performance in the past three quarters, including a record-setting interim dividend of N2 per share, further reinforcing UBA’s status as a “solid bank” with promising future prospects for investors.
The rights issue has garnered strong support from shareholders, who see it as a testament to UBA’s commitment to creating value and strengthening its relationship with investors.
