Shareholders have endorsed the United Bank for Africa (UBA) Plc’s N239.4 billion rights issue, indicating interest in buying into the shares.
Daily Trust reports that UBA recently opened an acceptance list for a N239.4 billion rights issue, offering 6.84 billion ordinary shares of 50 kobo each to existing shareholders at N35 per share.
The rights issue is pre-allotted on the basis of one new ordinary share of 50 kobo each to every five ordinary shares held as at November 05, 2024. The rights issue is scheduled to close on December 24, 2024.
According to shareholders, the rights issue provides an opportunity to tap into the stock with a huge yield on investment.
Our correspondent reports that minority retail shareholders constitute nearly three-quarters of UBA’s nearly 280,000 shareholders while more than 200,000 shareholders hold between one and 10,000 ordinary shares in the banking group.
Only one shareholder holds a substantial equity stake of 5.30 per cent, as at the last audit.
The banking group is one of the companies with the highest dividend payout, paying dividends twice in a year.
A shareholders’ activist and leader, Mr. Adeleke Adebayo, said UBA’s rights issue is good and well-structured with potential for less dilution and stronger earnings potential.
He said he would definitely pick up his rights given the positive outlook for the bank.
“My advice to other shareholders is to try and pick up their rights. UBA has made phenomenal progress over the years. Its growth and expansion are legendary. It has witnessed a very stable leadership and given consistent value to shareholders,” Adebayo, who sits on the board of other quoted companies, said.
National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude said shareholders should see the recapitalisation as both an opportunity to buy more shares and to stand with a good company that has shown commitment to shareholders’ value-creation
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