Wema Bank Gets Approval for N50bn Private Placement
Wema Bank Plc shareholders have approved a N50 billion private placement to augment its capital raising program ahead of the industry’s recapitalisation deadline.
In the equities market, Wema Bank Plc dipped slightly following the decision to raise fresh capital from private investors after the successful completion of the rights offer this week.
The bank took the road of capital raising in the absence of possible merger and acquisition deals on the table while the banking industry recapitalisation deadline set by the Central Bank drew near.
Data from the Nigerian Exchange showed that the bank share price declined by 149 basis points to close at N13.2. Shareholders also approved N1 dividend payment at the annual general meeting.
Wema Bank’s share price declined by about 1.5% on the day as 4.664 million units valued at N61.120 million exchanged hands in the local bourse. Hence, the market value of Wema Bank’s 21.43 billion shares outstanding on the Nigerian bourse fell to N282.878 billion.
Wema Bank Plc is trading at a 12.58% discount to its 52-week high in the equities market following completion of its N150 billion rights issue offer.
While the market awaits the results of the bank rights issue, the shareholders gave an approval at the annual meeting to launch a N50 billion private placement.
“It was unanimously resolved “that the bank raise additional capital only by way of private placement to meet a portion of the minimum recapitalization requirement for a nationally licensed bank,” details from its regulatory filing revealed. #Wema Bank Gets Approval for N50bn Private Placement#
Equities Investors Lose N274bn as Dangote, Fidelity Bank Dip
