Wema Bank Begins N150bn Capital Raise Via Rights Issue
Wema Bank Plc has announced the commencement of a N150bn capital raising exercise through a Rights Issue, in line with the Central Bank of Nigeria’s (CBN) directive on recapitalization for Nigerian banks.
The capital raise will be executed through the issuance of 14,286,785,417 ordinary shares of 50 kobo each at N10.45 per share, on the basis of two new ordinary shares for every three existing shares held as of the qualification date of March 5, 2025.
The offer is scheduled to open on April 14, 2025, providing existing shareholders an opportunity to deepen their stake in the bank.
According to a notice from the Board of Wema Bank to the NGX seen by THE WHISTLER, the Rights Issue is a strategic move aimed at strengthening the bank’s capital base in compliance with the CBN’s recapitalization mandate, while also positioning the bank for long-term growth and sustainability.
The Bank disclosed that proceeds from the capital raise will be deployed towards expanding its lending capacity—especially to Nigeria’s Small and Medium Enterprises (SMEs), retail, commercial, and corporate sectors.
Additionally, Wema Bank aims to enhance its information technology infrastructure and scale its digital banking platform, ALAT, which has played a critical role in increasing its market reach, particularly among younger, tech-savvy Nigerians.
“This Rights Issue represents a pivotal moment in our journey,” the Board said. “It will reinforce our aspiration to become a Systemically Important Bank (SIB) in Nigeria and create sustainable value for our shareholders.”
The Bank emphasized its steady growth trajectory in recent years, citing improvements in key performance metrics and rising market share as validation of its strategic direction.
It urged shareholders to fully exercise their rights, describing the offer as a chance to contribute to Wema Bank’s evolving vision and future success.
The move comes as Nigerian banks race to meet new capital requirements set by the CBN, aimed at improving financial system resilience and enabling institutions to support larger credit expansion across the economy.
Wema Bank Begins N150bn Capital Raise Via Rights Issue is first published on The Whistler Newspaper
