Efizy na so e be! United Bank for Africa (UBA) don hit big as dem don cross the N500 billion minimum capital wey Central Bank of Nigeria (CBN) set for banks wey wan operate internationally. Na correct move dis one, abeg!
Dem achieve this ‘odogwu’ feat when dem wrap up their N157.83 billion rights issue wey dem announce last Wednesday. As per their report wey dem drop for Nigerian Exchange Limited, UBA capital don now rise reach N350.08 billion, plus the new money wey dem gather from the rights issue. Chai! Na so dem bring plenty confirm cash enter their account.
We go sabi say the CBN don change rules, wey now need N500 billion for banks wey fit do international business. If na national level, na N200 billion be the new play, and for regional level, na just N50 billion. Merchant banks dey need N50 billion, while non-interest banks get their own as N20 billion and N10 billion based on their levels too.
For the rights issue wey close for September 2025, dem get as e be say na 113% na the subscription rate wey Vetiva Advisory Service yan. UBA don grab about 3,156,869,665 ordinary shares wey dem dey sell for 50 kobo each, at the price of N50.00. This kind sale fit make anybody chop better money!
As dem close di Acceptance List for 19 September, dem collect total of 6,404 acceptances wey dey worth N206.74 billion for about 4,134,747,690 ordinary shares. But the final oku wey dem get na N157.84 billion for 3,156,869,665 shares as dem finalise am. Talk wetin you go talk, plenty people wey invest sabi how to play their cards well!
The breakdown show say nearly 6,293 shareholders accept wetin dem get full, while 106 others take small share based on wetin dem feel fit manage. Funny enough, investors even demand extra 2,977,218,174 shares, but na only 2,568,006,215 dem fit distribute. Haba! One big, big application even carry 78.46% of di total value, na so N123.85 billion enter their pocket!
Despite all di wahala wey follow, UBA still manage to pull 100% allocation thanks to wetin one big shareholder do. E cancel over 409 million shares wey fit dey worth N20.46 billion, making room for others. But some applications still dey invalid, around N28.43 billion, wahala no dey finish!
As di matter dey unfold, Securities and Exchange Commission don approve dem based on how dem arrange di allotment matter. UBA don dey plan the timeline well, make sure say by Tuesday, 13 January 2026, dem go return any remaining subscription funds to investors, while dem go credit all the successful applicants’ accounts by Friday, 16 January 2026.
This rights issue way dem dey do na from July 2025, and na one share for every 13 shares wey you already hold, if you follow the qualification date wey dey pass like 16 July 2025. E no dey small, as dem don start this recapitalisation since April 2024, and as per CBN governor Olayemi Cardoso, 16 banks don already meet this new capital requirement.
Dem give these banks three options to flex their capital. Na fresh equity capital through private placements, rights issues, or merge and join body. The exemption wey dey current: Additional Tier 1 Capital no fit count for di capital requirement, so banks better wise up!
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