WEMA Bank To Raise N40Bn Through Right Issue


Samson Ayomide

The  Board of  Directors of Wema Bank has been authorised to raise capital of up to NGN40,000,000,000 by way of a rights issue to the existing shareholders of the Bank by issuing two new shares for every three shares held in the reconstructed capital of the Bank (“Rights Issue”), subject to obtaining relevant regulatory approvals;

This followed the completion of the Bank’s share reconstruction exercise carried out by the bank.

The announcement which was conveyed to the Nigerian Stock Exchange followed the resolution reached at the bank’s 2021 Extra-Ordinary General Meeting held on 31st December 2021.

Other resolutions reached include that  the Directors be and are hereby authorised to undertake the Rights Issue on such dates and on such terms (including underwriting) as may be determined by the Directors’

“The shareholders hereby waive their pre-emptive rights to any unsubscribed shares offered pursuant to the Rights Issue in the event of an under-subscription and hereby authorize the Directors to offer/issue such unsubscribed shares at a price not less than that specified in the Rights Issue Circular, in such manner as they think most beneficial to the Bank”

“That the Directors be and are hereby authorised to approve, sign and/or execute all documents, appoint such professional parties and advisers and to perform all such other acts and do all such other things as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authorities”

“That following allotment by the Board of Directors of the shares, the shares issued by the Bank pursuant to the Rights Issue or any unsubscribed shares disposed of by the Directors in accordance with Resolution 3 above be listed on the floor of the Nigerian Directors in accordance with Resolution 3 above be listed on the floor of the Nigerian Exchange Limited.”

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