NGX LISTS WEMA BANK’S RIGHTS ISSUE OF 8.572 BILLION SHARES

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Olori Uwem

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Mar 18, 2024
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NGX LISTS WEMA BANK’S RIGHTS ISSUE OF 8.572 BILLION SHARES

The Nigerian Exchange Limited (NGX) has listed Wema Bank Plc’s Rights Issue of 8.572 billion ordinary shares of 50 Kobo each at N4.66 per share on its Daily Official List. This addition was detailed in the NGX weekly report, as seen by Nairametrics.

Key Details:
- Shares Listed: 8,572,022,765 ordinary shares of 50 Kobo each at N4.66 per share.
- Subscription Rate: The Rights Issue was 99.9% subscribed.
- Total Issued Shares: With this listing, Wema Bank's total issued and fully paid-up shares increased from 12,858,155,360 to 21,430,178,125 ordinary shares of 50 Kobo each.

Official Statement:
"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)."

Recapitalisation Exercise:
Wema Bank successfully concluded the first tranche of its recapitalisation exercise, securing all relevant regulatory approvals for the allotment of its N40 billion rights issue. This initiative is part of a broader recapitalisation programme mandated by the Central Bank of Nigeria (CBN), requiring commercial banks to raise fresh capital to meet the minimum requirements for their respective banking licences within a 24-month timeline (April 1, 2024, to March 31, 2026).

- Managing Director's Statement: Mr. Moruf Oseni emphasized the bank's commitment to maintaining its commercial banking licence with national authorisation, highlighting that the N40 billion rights issue is a crucial step in this direction. He also noted the bank's proactive approach in commencing its capital raise programme early, with a strong focus on digital advancements.

Stock Performance:
- Recent Trading Activity: Wema Bank closed at N6.65 per share on the Nigerian Stock Exchange (NGX) on Friday, July 12, 2024, reflecting a 0.7% drop from its previous closing price of N6.70.
- Year-to-Date Performance: The bank’s share price has increased by 18.8% since the beginning of the year, starting at N5.60 per share.

This development marks a significant milestone for Wema Bank as it continues to strengthen its capital base and expand its market presence, ensuring compliance with regulatory requirements and positioning itself for future growth.