Wema Bank Moves to Raise N40bn
Tier-2 lender, Wema Bank Plc, is seeking to raise additional capital from sales of the right issue which allows existing shareholders to remove risk of shareholding dilution.
Amidst a plan to shore up the bank’s capital base, Wema is expected to sell ₦39,946,002,650.18 worth of right issue.
According to details shared by Atlass Portfolios Limited, Wema Bank Plc has opened its right issue of 8,572,103,573 Ordinary Shares of ₦0.50k, each at an issue price of ₦4.66 per.
The offer is expected to close on Friday, 29 December 2023 with about N40 billion capital raise in the pipeline.
The company is offering 8,572,103,573 Ordinary Shares of ₦0.50 each on the basis of two shares for every three existing shares held at ₦4.66 per share, according to Atlass Portfolios LIMITED.
The firm hints investors that Greenwich Merchant Bank Limited is the lead issuing house for the offer. The investment firm said all the shares to be issued shall rank pari-passu in all respects with the issued Ordinary Shares of the Bank.
The tier 2 lender is seeking more shareholders funding to increase the Bank’s lending capacity to the SME sector. The management is seeking to deepen the Bank’s Retail and Commercial loan portfolio and improve IT infrastructure to strengthen the Bank’s digital play (ALAT). Naira Devaluation Deepens Economic Crisis in Nigeria
In the stock market, Wema Bank Plc market capitalisation is about N60 billion, and after the issue, the company’s valuation is expected to rise to about N100 billion – if the offer is fully taken, Atlass Portfolios Limited said.
Shareholders who renounce their rights or do not accept their allotment in full may have their shareholding in the Bank diluted.