UBA seeks shareholders’ approval to issue 10.8 billion shares for recapitalization

At the bank’s annual general meeting, the Board of UBA Plc will ask shareholders for permission to issue 10.8 billion new ordinary shares as part of the group’s attempt to increase the share capital from N17.099 billion to N22.5 billion.

The bank is requesting to increase the number of its issued shares from 34.199 billion to 45.999 billion ordinary shares valued at N0.50 each, per a document signed by Bill A. Odum, Group’s Company Secretary.

The bank is trying to strengthen its capital basis in order to comply with regulatory standards, thus this action has become essential. UBA now has N115.8 billion in total share capital and share premium, which is N384.2 billion less than its N500 billion needed capital basis.

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The notice read,  “That the Issued Share Capital of the Company be and is hereby increased from N17,099,710,683 (seventeen billion, ninety-nine million, seven hundred and ten thousand, six hundred and eighty-three Naira only) divided into 34,199,421,366 (thirty-four billion and one hundred and ninety-nine million, four hundred and twenty-one thousand, three hundred and sixty-six) ordinary shares of N0.50 Kobo each to N22,500,000,000 (twenty-two billion five hundred million Naira) by the creation of 10,800,578,634 (ten billion eight hundred million five hundred and seventy-eight thousand six hundred and thirty-four) new ordinary shares of N0.50 Kobo each ranking pari-passu with the existing ordinary shares of the Company and that the Board be authorized to take the necessary steps, if deemed appropriate, to cancel any unallotted shares of the Company or to further increase the share capital of the Company to an amount sufficient to accommodate any transaction undertaken by the Company to raise additional equity capital.”