5 hours ago
3
BY TEMITOPE ADEBAYO
Wema Bank Plc has received shareholder approval to raise N50 billion through a private placement, reinforcing its capital base ahead of the Central Bank of Nigeria’s recapitalisation deadline for banks.
The approval, granted at the bank’s annual general meeting, follows the completion of a N150 billion rights issue and signals Wema Bank’s intention to meet regulatory capital thresholds without pursuing mergers or acquisitions. According to a regulatory filing, the private placement will cover a portion of the minimum capital requirement for a national banking licence.
Market reaction was slightly negative as investors digested the news. Wema Bank’s share price fell by 1.49 per cent to close at N13.20 on the Nigerian Exchange, with 4.66 million units traded at a value of N61.12 million. This brought the bank’s market capitalisation to N282.88 billion, with the stock now trading at a 12.58 per cent discount to its 52-week high.
READ ALSO: Mahmoud hails female journalists’ role in curbing insecurity
Despite the dip, shareholders also approved a N1.00 per share dividend, reflecting confidence in the bank’s earnings performance and strategic direction. As the banking sector moves into a decisive phase of recapitalisation, Wema Bank’s latest capital move positions it to remain competitive and compliant with new regulatory standards.
English (US) ·