capital market
Recapitalisation: Wema Bank gets regulatory approvals for N40bn rights issue
Wema Bank says it has successfully concluded the first tranche of its recapitalisation exercise having secured all relevant regulatory approvals for the allotment of its N40 billion rights issue.
Its Managing Director, Mr Moruf Oseni, disclosed this in a statement made available on Friday in Lagos.
Oseni said as a forward-thinking and pioneering bank, the financial institution in December 2023 launched N40 billion rights issue which had been approved by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
CBN in March, launched a recapitalisation programme requiring commercial banks to raise fresh capital.
This is in alignment with the minimum requirement for their respective banking licenses within a 24-month timeline spanning April 1 to March 31, 2026.
The goal of recapitalisation is to simultaneously boost the Nigerian economy and strengthen its financial services industry.
Oseni said: “With this remarkable development, Wema Bank has now successfully raised the first tranche of its plan in the minimum requirement laid down by the CBN.
“The bank’s resolve in retaining its commercial banking license with National authorisation and the N40 billion rights issue is a step in that direction.
“Our move to commence our capital raise programme very early demonstrates our push for excellence, and with a strong emphasis on our digital play, we are set to amass more successes in the coming months,” he said.
The managing director expressed satisfaction with the vote of confidence given by the bank’s shareholders during its first rights issue exercise, noting that its shares were fully subscribed.
Oseni stated that the bank also obtained the approval of its shareholders at its 2023 annual general meeting to raise an additional N150 billion to meet the capitalisation threshold set by the CBN.
He hinted that the process was expected to be completed within 12-18 months.
Oseni said: “We are committed to providing optimum returns for every stakeholder and the successful conclusion of this N40 billion rights issue is a bold step in the right direction.
“In addition to the upward trend in the bank’s financial performance and the success recorded so far in its recapitalisation exercise, Wema Bank’s corporate rating was recently upgraded to BBB+ by Pan African credit rating agency, Agusto and Co.
“The bank was also retained at BBB by international rating agency, Fitch.”
According to him, over the medium to long term, Wema Bank is positioned to not only dominate the digital banking space but also the Nigerian financial services industry at large as it translates its industry leadership to significant market share.
By Ifeoluwakitan Afolabi
Shareholders of Total Nigeria Plc have praised the company for its consistent dividend payment despite the challenging operating environment.
At the company’s Pre-Annual General Meeting (AGM) held in Lagos, stakeholders commended Total’s entrenched safety culture, innovation, and good corporate governance for its impressive performance.
Mrs. Ifeyinwa Chinwe, a stakeholder, attributed the company’s success to its commitment to excellence and urged the government to create a more business-friendly environment to encourage companies like Total to thrive.
She also emphasised the importance of individual actions in promoting sustainability, encouraging everyone to adopt eco-friendly practices like recycling, conserving energy, and reducing plastic use.
The shareholders’ appreciation and Mrs. Chinwe’s call to action highlight the importance of collaboration between businesses and individuals in driving growth and sustainability in Nigeria.
Addressing the shareholders, the chairman Mr Jean-Phillipe Torres said he was glad to meet everyone once again, especially the fact that he’s back to Nigeria and that Nigeria has become a place where he could call home.
He encouraged everyone to please do better and ensure they are doing the right thing at the right time.
“In 2023, TotalEnergies reported a turnover of $281.7 billion. For 2024, their Q1 2024 results indicate a slight increase in turnover compared to Q1 2023, reflecting higher energy prices and increased production,” he said.
The equities market resumed from the Eid-El-Kabir holiday with investors losing N47 billion at the end of trading session on Wednesday.
This followed a dip in the share price of stocks like Caverton, ABC Transport, and NB amongst others on the trading floor today.
After five hours of trading at the capital market, the equity capitalisation crashed to N56.4 trillion from N56.5 trillion posted by the bourse on Friday.
Similarly, the All-Share Index (ASI) decreased to 99,840.95 from 99,925.29 recorded the previous trading day.
The market breadth was positive as 40 stocks advanced, 15 declined, while 70 others remained unchanged in 9, 899 deals.
UPL, Guinness, and Champion led other gainers with 10 percent, 9.96 percent, and 9.83 percent growth in share price to close at N2.75, N66.25, and N3.24 from the previous N2.50, N60.25, and N2.95 per share.
On the flip side, Caverton, ABC Transport, and NB led other price decliners as they shed 9.62 percent, 9.52 percent, and 8.37 percent each to close at N1.41, N0.57, and N29.00 from the initial N1.56, N0.63, and N31.65 per share.
Veritaskap traded 55.731 million shares valued at N443 million in 103 deals.
On the value index, Fidelity Bank recorded the highest value for the day trading stocks worth N11.3 billion in 466 deals followed by Geregu which traded equities worth N1.09 billion in 61 deals.
MTN Nigeria traded stocks worth N596 million in 454 deals.
The naira, Nigeria’s currency on Wednesday traded flat at N1,490 on the parallel market, popularly called the black market, following improved dollar liquidity in the foreign exchange (FX) market.
When compared to last week’s rate of N1,495, the naira recorded a marginal gain of 0.33 percent per dollar on the black market.
A total of $5.95 billion from the World Bank and Afreximbank entered into the Nigerian economy, helping to strengthen Nigeria’s external reserves and the naira.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed flat on Friday, gaining marginally by 0.06 percent as the dollar was quoted at N1,482.72 on Friday as against N1,483.62 closed on June 10, 2024, according to the data obtained from the FMDQ Securities Exchange Limited.
The dollar supply by willing buyers and willing sellers increased by 13.47 percent to $183.47 million on Friday, June 15, 2024 from $161.69 million as of June 10, 2024, according to data from the FMDQ Securities Exchange Limited.
Nigeria‘s foreign currency reserves have risen by 2.19 percent month-on-month, following streams of dollar inflows from international financial institutions.
Data from the Central Bank of Nigeria (CBN) revealed that external reserves grew to $33.159 billion as of June 11, 2024 from $32.447 billion in May 10, 2024.
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