Wema Bank Plc has announced the commencement of a N150bn rights issue as part of its recapitalisation strategy, with the offer set to open on April 14, 2025.
PLATFORM TIMES reports that in a corporate disclosure filed with the Nigerian Exchange Limited on Friday, the bank said it would issue 14,286,785,417 ordinary shares of 50 kobo each at N10.45 per share.
The offer will be on the basis of two new ordinary shares for every three held by shareholders whose names appear in the register as of March 5, 2025.
This marks the first phase of the bank’s broader plan to raise N200bn in fresh capital through a combination of rights issue and special placement, in line with the Central Bank of Nigeria’s recapitalisation directive for Nigerian banks.
Wema Bank stated that the capital raise would reinforce its long-term ambition of becoming a Systematically Important Bank (SIB), enhance its capacity to support critical sectors, and drive sustained growth.
“This is a key step that will consolidate the bank’s vision of becoming a Systematically Important Bank and creating value for our esteemed shareholders,” the statement read.
“Our consistent growth in key performance indicators and market share reflects the success of our strategic initiatives and the trust our shareholders have shown us.”
The bank noted that proceeds from the rights issue would be deployed toward expanding its loan portfolio, particularly targeting the Small and Medium Enterprises (SMEs), retail, commercial, and corporate banking segments.
In addition, Wema Bank plans to channel part of the capital to bolster its digital infrastructure, especially its flagship digital banking platform, ALAT, which it says has “facilitated market penetration” and enhanced financial inclusion among Nigeria’s youthful and tech-savvy population.
The rights issue is being managed by Greenwich Merchant Bank Limited, GTI Capital Limited, Qualinvest Capital Limited, and Raddix Capital.
Wema Bank, which recently marked its 80th anniversary, has continued to witness significant investor confidence, highlighted by a 100 per cent increase in dividend payout announced earlier this year.
The rights issue aligns with the Central Bank’s directive requiring banks to shore up their capital base to meet evolving regulatory and economic demands.
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