UBA’s rights issue commenced a few months ago and seems to be lagging. The offer was extended by a few weeks.

It was initially scheduled to close on Friday, September 5, 2025, but was extended by two weeks and will now close on Friday, September 19, 2025, following the receipt of approval from the Securities and Exchange Commission

What’s a rights issue?

A rights issue is when a company sells shares to existing investors. 

Details of the rights issue 

3,156,869,665 new shares on the basis of 1 for every 13 shares held as at the 16th of July 2025, which was the qualification date.

Each rights share is going at N50.

What will UBA use the proceeds for? 

N61.8 billion will go to lending

N46.4 billion to tech and digital transformation

N46.4 billion for Business network expansion and branch upgrade

Why is there apathy?

There seems to be some apathy towards the rights issue

In some ways, i think UBA’s management may have miscalculated in terms of pricing. 

The qualification date for the rights issue was the 16th of July, 2025. The stock closed at N50.50 and then pulled back. At that pricing, the rights is trading fairly higher than the market price range. That in some ways, may have discouraged people from taking up their rights.

Ideally rights issues are priced below the market price of a stock to encourage investors to take them.

What next?

The ideal thing to do is either take up your rights issue or sell them. Rights that can be traded is known as renounceable.

Many of UBA’s retail investors will just let the rights issue slide.