United Bank for Africa Plc (UBA) has successfully concluded a significant capital-raising exercise, with the Nigerian Exchange officially admitting over 3.1 billion new ordinary shares to its Daily Official List, pushing the pan-African lender’s total issued shares beyond 44 billion.
The admission, confirmed in a listing letter dated January 12, 2026, and signed by Godstime Iwenkehai, Head of the Issuer Regulation Department at NGX, marks the final step in UBA’s rights issue that raised N178.3 billion and brought the bank into full compliance with the Central Bank of Nigeria’s stringent new capital requirements for international banking licenses.
The rights issue, which offered 3,156,869,665 ordinary shares of 50 kobo each at N50 per share on a one-for-thirteen basis to shareholders on the register as of July 16, 2025, drew remarkable investor interest. Applications totaled 4.13 billion shares—approximately 31% above the offer size—underscoring strong market confidence in the institution.
Of the total applications received, UBA processed 3.57 billion valid applications, while 568.67 million shares were deemed invalid. The successful raise adds to the bank’s November 2024 capital injection of N239 billion, which had previously lifted its capital base to approximately N355 billion.
With both exercises now complete, UBA’s total capital comfortably exceeds the N500 billion threshold mandated by the CBN for Tier One banks operating with international licenses—a requirement that has prompted widespread recapitalization efforts across Nigeria’s banking sector.
The newly admitted shares have increased UBA’s total issued share capital from 41.04 billion ordinary shares to 44.20 billion ordinary shares. This expansion reflects not only the bank’s compliance efforts but also its strategic positioning for continued growth across its extensive African network.
Market response has been positive, with UBA’s stock price climbing from N43 to N45.20 following the January 7, 2026, announcement of the rights issue completion – a gain of approximately 5% that suggests investor optimism about the bank’s capital position and growth prospects.
UBA’s capital raise comes against the backdrop of solid, if uneven, financial performance. For the nine months ending September 2025, the bank reported profit after tax of N537.5 billion, representing a modest 2.33% year-on-year increase, supported by gross earnings of N2.5 trillion.
Interest income proved to be the primary driver, surging 10.1% year-on-year to N1.98 trillion, buoyed by a 3.5% expansion in loans and advances to N7.20 trillion. Significant contributions also came from investment securities, helping to push net interest income up 6% to N1.17 trillion.
However, the picture was less favorable on the non-interest income front. This segment contracted sharply by 28.8% year-on-year to N310.1 billion, primarily due to steep declines in trading and foreign exchange income—a reflection of challenging market conditions and currency volatility that have affected banks across the region.
A bright spot emerged in fees and commission income, which grew 4.3%, driven by heightened activity in digital banking services and trade finance—areas where UBA has been investing heavily to capture growing demand for electronic financial services.
The bank’s balance sheet showed healthy expansion across critical indicators. Total assets rose 8% to N32.49 trillion, while customer deposits climbed 8.7% to N23.80 trillion, demonstrating continued customer trust and franchise strength. Perhaps most significantly, shareholders’ funds increased from N3.42 trillion to N4.30 trillion, reflecting the capital injection and retained earnings.
The successful capital raise positions UBA to support and potentially expand its operations across its 20 African markets and presence in major global financial centers, including New York, London, and Paris. The additional capital provides a cushion for loan growth, regulatory compliance, and strategic investments as African economies continue to develop and demand for banking services grows.
The strong shareholder participation in the rights issue—evidenced by the 31% oversubscription—signals market confidence in UBA’s management and its strategic direction. It also reflects the bank’s track record of delivering returns and maintaining its position as one of Africa’s leading financial institutions.
As Nigerian banks navigate the CBN’s recapitalization requirements, UBA’s early completion of its capital-raising obligations places it in a strong competitive position, with the financial flexibility to pursue growth opportunities while peers continue their own fundraising efforts.
The listing of the new shares brings clarity to UBA’s capital structure and provides a foundation for the bank’s next phase of growth in what remains a dynamic and competitive African banking landscape.
WHAT YOU SHOULD KNOW
United Bank for Africa has successfully raised N178.3 billion through a heavily oversubscribed rights issue, pushing its total capital above the N500 billion regulatory threshold for international banks. The Nigerian Exchange has now admitted over 3.1 billion new shares, increasing UBA’s total shares to 44.2 billion.
This milestone—achieved through two capital raises totaling over N417 billion—positions UBA ahead of competitors in meeting the Central Bank’s stringent requirements, while strong investor demand (31% oversubscription) signals continued market confidence in the pan-African bank’s growth trajectory despite challenges in foreign exchange income.
