In the impending N239.4 billion rights offering of United Bank for Africa Plc, several members of Nigeria’s minority investor community have pledged to assert their rights.
On November 15, UBA offered 6.84 billion ordinary shares of 50 kobo each to current shareholders at a price of N35 per share, opening acceptance for the N239.4 billion rights issue.
For every five ordinary shares owned as of November 5, 2024, one new ordinary share worth 50 kobo each will be pre-allocated as part of the rights issue. The deadline for closing the rights issue is December 24, 2024.
A few shareholder organisations announced that they will be pushing their members to use their rights and more.
Members of the minority investing community stated in separate conversations that UBA has a long history of prioritising the interests of its shareholders when making decisions.
They highlighted the bank’s exceptional achievement in generating dividends and capital gains for shareholders.
In his remarks, Sunny Nwosu, the founder of the Independent Shareholders Association of Nigeria, claimed that UBA had won over the investing public due to its lengthy history of treating shareholders well.
According to Mr. Adeleke Adebayo, a leader and shareholder activist, UBA’s rights issue is sound and well-structured, with the potential for higher profitability and reduced dilution.
Given the favourable outlook for the bank, he stated that he would assert his rights.
According to Dr Faruk Umar, president of the Association for the Advancement of Rights of Nigerian Shareholders, the bank’s decision to grant rights to current shareholders demonstrates the ongoing trust between the two parties.
Umar characterised UBA as a “solid bank” with much more to give the shareholders in the future, citing the bank’s performance over the last three quarters and its record-setting interim dividend of N2 per share.
