Wema Bank seeks shareholder approval to raise N200bn

Wema Bank Plc, one of Nigeria’s commercial banks will seek shareholders’ approval to raise N200 billion in capital at the group’s annual general meeting (AGM) scheduled to be held electronically on May 28, 2024.

The bank aims to leverage this capital to meet regulatory requirements and advance its business objectives, according to details disclosed in the AGM notice by the bank.

The statement said, the proposed capital raise, which will be subject to shareholders’ approval, is intended to be achieved through a combination of methods including public offers, rights issues, and private placements.

“As part of the expansion plans, Wema Bank also seeks to increase its issued paid-up share capital, from N6.429 billion to N25 billion. This will be executed by creating an additional 37.14 billion ordinary shares, each valued at 50 kobo, which will be on par with the existing shares,” it said.

The statement further disclosed that the AGM will present shareholders with special resolutions to consider, which include authorising the board of directors to allocate and issue various types of securities (such as ordinary shares, preference shares, notes, and bonds) to fulfil the proposed capital raise.

Additionally, the resolutions empower the board to implement strategic measures to comply with the Central Bank of Nigeria’s recapitalization directives.