Nigeria's United Bank for Africa has opened subscriptions for a N239.4bn (US$143.6m) rights issue to comply with new minimum capitalisation regulations.

A total 6.84bn shares are being offered on a 1-for-5 basis at N35 each, a 4.5% premium to the N33.45 close on Friday.

Approval to issue up to 10.8bn shares was granted in May at an AGM.

Shareholders as of November 5 can participate. A prospectus and timeline is yet to be announced.

Changes to minimum capital requirements by Nigeria’s central bank have triggered a number of similar recapitalisations with FBN Holdings earlier this month opening subscription for a N150bn rights issue.

Nearly 6bn shares are being offered on a 1-for-6 basis at N25 each. Shares closed on Friday above issue at €27.60.

Subscription closes on December 12 and a result is expected to be announced on January 24.

Greenwich Merchant Bank is lead issuing house.

Results are not yet out on rights issues by Fidelity Bank and Access Holdings that completed subscription earlier in the year.

Source: IFR