Wema Bank plc has received regulatory approval from the Nigerian Stock Exchange (NSE) and Securities & Exchanges Commission (SEC) for the special placing and listing of 23,333,333,334 ordinary shares of 50kobo each at N1.50 per share.
The approvals will enable the bank commence the process of listing the shares within the next three months as it shops for N35billion through this process. The bank held its completion board meeting yesterday in Lagos. With this development, it is expected that the Bank will complete the process of raising the required capital before April 30, 2013.
Segun Oloketuyi, managing director/chief executive officer, Wema Bank said the Bank is pleased with the approvals received as it signifies a key milestone in the entire process which began in December. “The completion of the placement process will further enable Wema Bank compete more effectively in the banking industry and also enhance the quality of products and services being offered to an increasing customer base. “We will remain focused on efficient service delivery whilst scaling our business organically and strategically for superior returns to all stakeholders”, he added.
Oloketuyi also expressed his appreciation to all regulators who have supported the ongoing transformation process in the bank and also praised the painstaking efforts of all parties to the offer in ensuring strict compliance and adherence to all regulatory requirements by the bank that has made the approvals possible. The Bank expects to use the funds realized from the special placing to grow its business, invest in IT infrastructure and expand its operations.
Since the start of the financial year, Wema Bank’s shares listed on the Nigerian Stock Exchange, have witnessed an over 150 percent year-to-date (YTD) appreciation in value, buoyed by renewed investor confidence in the market and the Bank’s management ability to fully stabilize and turnaround the fortunes of the Bank since they took over management in 2009.
On seeking a National Banking License to enable it expand its scope of physical operations beyond the current geographical boundaries; Oloketuyi said the process of exploring available options to securing a National Banking License from the Central Bank will commence upon completion of the special placing.
It will be recalled that In December 2012, Wema Bank announced plans to raise capital by way of a special placing with commitment from investors already secured to the tune of the N35billion offer size.