Wema Bank Slips Amidst Huge Off-Market Shares Transactions
Amidst a plan to raise additional capital, Nigerian local lender, Wema Bank Plc, experienced a moderate price decline over the last five trading sessions in the equities segment of the Nigerian Exchange (NGX).
Wema Bank market value declined by about 3% amidst significant off-market trade. Data from the Nigerian Exchange showed that Wema Bank share price declined to N10.4 on Friday from N10.70 at the beginning of the week.
The negative investors’ sentiment plunged the Tier-2 lender’s market value downward to N222.873 billion, spread over its 21.43 billion shares outstanding in the Nigerian bourse.
The banking stock, which traded at a 14% discount to its 52-week high, was picked for an off-market transaction last week. In a note, market analysts at AIICO Capital Limited hinted that a total of 972.67 million WEMABANK shares priced at ₦10.00 were taken out of the NGX trading platform last week.
Analysts said off-market share transactions require prior agreement between a buyer and a seller to execute the transaction on a listed security at an agreed price and quantity.
The huge share volume has zero impacts on its market price as expected as the transaction was not settled via a Nigerian regulated stock exchange. Wema Bank Plc is planning to raise additional capital totalling N200 billion to meet its recapitalisation target, its chief executive office has revealed. #Wema Bank Slips Amidst Huge Off-Market Shares Transactions FG to Construct 10,000 Housing Units for Medical Workers Nationwide
