NGX Lists Wema Bank’s Rights Issue Of 8.572bn Shares

The Nigerian Exchange Limited (NGX) has officially listed Wema Bank Plc’s Rights Issue of 8.572 billion ordinary shares on its platform.

This listing was detailed in the recent NGX weekly report and marks a significant step in Wema Bank’s recapitalisation efforts.

According to the NGX report, the additional shares arose from Wema Bank’s Rights Issue of 8,572,103,573 ordinary shares of 50 Kobo each at N4.66 per share, with a 99.9 percent subscription rate.

The report states: “Trading Licence Holders are hereby notified that an additional 8,572,022,765 ordinary shares of 50 Kobo each at N4.66 per share of Wema Bank Plc (WEMA or the Bank) were on Friday, 12 July 2024, listed on the Daily Official List of Nigerian Exchange Limited (NGX). The additional shares listed on NGX arose from WEMA’s Rights Issue of 8,572,103,573 ordinary shares of 50 Kobo each at N4.66 per share (The offer was 99.9 percent subscribed).”

With this new listing, the total issued and fully paid-up shares of Wema Bank have increased from 12,858,155,360 to 21,430,178,125 ordinary shares of 50 Kobo each. This marks a substantial increase in the bank’s share capital, bolstering its financial position.

Wema Bank recently announced the successful completion of the first tranche of its recapitalisation exercise, securing all relevant regulatory approvals for the allotment of its N40 billion rights issue. Managing Director (MD), Mr.  Moruf Oseni, highlighted this milestone, stating that the bank launched the N40 billion rights issue in December 2023, which was approved by both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

The CBN, in March 2024, launched a recapitalisation programme requiring commercial banks to raise fresh capital to meet the minimum requirements for their respective banking licenses within a 24-month timeline, from April 1, 2024, to March 31, 2026.

Mr. Oseni emphasised Wema Bank’s proactive approach in meeting these requirements.

Wema Bank closed its last trading day on Friday, July 12, 2024, at N6.65 per share on the NGX, reflecting a 0.7 percent drop from its previous closing price of N6.70. Despite this slight decline, Wema Bank has seen an 18.8 percent increase in its share price since the beginning of the year, starting at N5.60 per share.

With the successful listing of the rights issue and the bank’s ongoing efforts to meet regulatory requirements, Wema Bank is well-positioned to strengthen its market presence and continue its growth trajectory. The strategic move to raise capital early underscores the bank’s commitment to excellence and its focus on leveraging digital innovations to drive future successes.