Buoyed by its strong fundamentals, growth trajectory, and prospects of a brighter future, the investment community, comprising shareholders, investors, stockbrokers, and financial analysts, are warming up to participate in the N200 billion rights issue and special placement of Wema Bank Plc, which is scheduled to open on April 1, 2025.

Already, some top-notch institutional investors, who are said to have taken a strong position in Nigeria’s oldest deposit money bank, are evidence of confidence in its future growth and development.

In a strategic move to comply with the new capital requirement for banks by the Central Bank of Nigeria (CBN), Wema Bank has filed an application to the Nigerian Exchange Limited (NGX) to raise N149.3 billion by rights issue, offering 14.29bn Ordinary Shares at N10.45 per share through its stockbrokers, Global Asset Management Nigeria Limited and Qualinvest Capital Limited.

The bank is also set to mobilise N50 billion through private placement. The bank’s financial indices and sustained high performance on the Nigerian Exchange Limited last year have earned it a top rating in the nation’s ecosystem. Wema Bank’s stock remained bullish in 2024 and emerged as one of the best-performing stocks in the banking sector in the year, with a record of over 60 percent capital appreciation and 33 percent this year.

Investment analysts view the rising profile of Wema Bank as a manifestation of its market acceptability and a product of the successful reengineering of its operations and business structure, as envisioned by the Moruf Oseni-led management.

“Wema Bank’s outlook remains positive, with sustained growth in total assets over the years, exponential growth in profit, and very sound and dynamic leadership,” says Layi Olaleru, Executive Director, Business Development, CSL Stockbrokers.

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The Chief Executive Officer of Highcap Securities, David Adonri, explained that Wema Bank has been transformed into a viable investment-grade stock based on its remarkably improved fundamentals.

“I believe that the bank has bright prospects and will meet investors’ expectations. The price of the issue is also attractive, as it is a discount to the market price. This is the time for existing investors to show commitment to their bank and, through the offering, facilitate its competitive strength,” Adonri stressed.

According to Tajudeen Olayinka, Chief Executive Officer of Wyoming Capital and Partners, Wema Bank’s core investors must be very confident that the rights issue would succeed and therefore pre-arrange the core funding of the rights.

With the current status of the bank and the final phase of its recapitalisation, its national license grade has been secured a year ahead of the CBN’s deadline.

The bank’s Managing Director, Moruf Oseni, had earlier assured shareholders and other stakeholders of a successful conclusion of the capital raise programme, saying: “Wema Bank is not just Nigeria’s oldest indigenous bank but also Nigeria’s leading innovator.

The management is strongly focused on achieving the Bank’s strategic aspirations by building it into a formidable force in the African financial services landscape. We will keep working tenaciously to become a Systemically Important Bank, re-attain Tier-1 status, and continue to provide optimum value for every shareholder and stakeholder.”

The management of the bank had, in December 2023, proactively initiated a capital raise of N40 billion ahead of the CBN’s directive, which it successfully carried out in 2024, thus positioning it for a strong market outing after outperforming competitors.

With Wema Bank marking its 80-year anniversary in May this year as the oldest bank in Nigeria, market watchers have expressed optimism that the proposed capital raise will enhance its competitive edge.