Wema Bank to Raise N40 bln Via Rights Issue
Wema Bank Plc has hinted about a plan to raise N40 billion via right issues after its share reconstruction programme, according to resolution at its 2021 Extra-Ordinary General Meeting held on 31st December 2021.
The bank said in a statement submitted to the Nigerian Exchange that resolutions were proposed and duly passed by the requisite majority at the meeting.
Management move for capital reconstruction is not unconnected to the need to enhance the bank capital position.
After the completion of the Bank’s share reconstruction exercise, the Board of Directors is authorised to raise capital of up to N40,000,000,000 by way of a rights issue to the existing shareholders, it said.
Wema Bank will be issuing two new shares for every three shares held in the reconstructed capital of the Bank subject to obtaining relevant regulatory approvals.
The resolutions however allow Wema Bank Directors to undertake the rights issue on such dates and terms including by underwriting as may be determined.
Wema Bank said the right-sizing of its paid-up share capital of ₦19,287,233, comprising of 38,574,466,082 ordinary shares of a nominal value of ₦0.50 each to bring it down to ₦6,429,077,680- 67% of the current figure- by way of the Scheme has been approved at the courted order meeting.
It said ₦6,429,077,680 comprising of 12,858,155,360 ordinary shares of a nominal value of N0.50 each will be retained as the Bank’s paid-up share capital.
Each of the shareholders is expected to now relinquish the pro-rata portion of the 25,716,310, issued ordinary shares of ₦0.50 kobo each of the Bank together with all the rights, title and interests attaching thereto, in accordance with the relinquishment ratio and the terms of the Scheme.
A total sum of ₦12,858,155,361 being the value of the relinquished shares is expected to be credited to the Bank’s share premium account, according to court order resolutions.
It stated further that the Bank acknowledges and accepts the surrender of the relinquished Shares with the rights and interests attached thereto. Wema Bank will also re-issue the relinquished shares, according to the resolutions.
As part of the Scheme, each of the shareholders shall retain one ordinary share of ₦0.50 kobo each for every three ordinary shares previously held in the share capital of the Bank resulting in a total of 12,858,155,360 ordinary shares.
#Wema Bank to Raise N40 bln Via Rights Issue
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