– – – Describes it as Juicy Offer
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BY MOSHOOD ISAMOTU / LAGOS
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Impressed by the intrinsic value, investors’ reward policy, steady capital appreciation, and prospects of sustained good return on investment. shareholders’ associations have been engaging their members to participate in the ongoing Wema Bank Plc’s Rights Issue and Special Placement of N200 billion capital raise.
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Since the opening of the Bank’s capital raise on April 14, 2025, shareholders’ associations have embarked on enlightenment of their members to take advantage of the investment, which they described as a juicy offer with high prospects of better returns on investment.
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They explained that the Managing Director of Wema Bank, Moruf Oseni, and his team, have demonstrated capacity to sustain the growth trajectory in the financial institution and capable of realising the intrinsic value the Bank’s stock offers, an attraction that the shareholders’ associations want their members to benefit from.
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The leadership of the shareholders’ groups believe that Wema Bank, as an established brand, has been shareholder-friendly in terms of dividend payout, while its stock now offers comparatively higher capital appreciation, emerging as the best-performing stock in the banking sector in 2024, extending the growth till 2025.
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They noted that taking up Wema Bank’s discounted Rights Issue at N10.45 per share was a comparatively good investment amidst competitors’ recapitalization strategy options toward meeting the Central Bank of Nigeria’s (CBN) new capital requirement by March 2026.
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According to Mr. Boniface Okezie, the President of the Progressive Shareholders Association of Nigeria (PSAN), Wema Bank has been generous to shareholders, who view investment in the Bank as a good one.
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“We have intensified an awareness campaign for the Bank’s Rights Issue, which we believe will strengthen our portfolios in the banking sector. The current and future of the Wema Bank is very attractive to us”, Okezie noted.
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He stated further, ‘Wema Bank has been doing very well. The management is doing excellent after the repositioning, which has manifested in the high capital appreciation of its stock. We encourage shareholders to take advantage of the Rights Issue in expectation of a bumper harvest at the end of each financialyear. The Bank is doing very well. Today, the Bank is a leader in IT banking, which has positioned it to be a bank for today and tomorrow. We encourage our members to fully take up their Right Issue”, the PSAN president advised.
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Speaking in the same vein, the Co-ordinator of the Pragmatic Shareholders Association, Mrs. Bisi Bakare, added that Wema Bank is the investors’ delight because it is the only surviving indigenous Bank in Nigeria today. ‘The Bank has been doinggreat under the new Management. I have a good impression of the bank that the bank’s Right offer is going to be oversubscribed. There’s an improvement in their Year-on-Year performance for two consecutive years. Investors are going to get good returns on their investment. They should take up their Rights offer’, she added.
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Investigations revealed that shareholders are reaching out to their members and recommending Wema Rights Issue in their forums and by word-of-mouth, relying on the Bank’s historical record, current status, focused management, and the highly attractive prospects.
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Wema Bank is raising N149.3 billion by Right Issue, offering 14.29 billion Ordinary Shares at N10.45 per share, through its stockbrokers, Global Asset Management Nigeria Limited and Qualinvest Capital Limited. The bank is also mobilizing N50 billion through private placement in a strategic move to comply with the new capital requirement for banks by the CBN.
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An independent Report on Wema Bank PLC’s equity by a Team of Analysts at Global Assets Management Nigeria Limited has revealed that the Bank’s stock, which rose N12 per unit (as of April 14) on the Nigerian Exchange Limited (NGX), is trading below its intrinsic value.
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With an estimated intrinsic value of ₦30.40 per share, Wema Bank’s stock is significantly undervalued at its current market price of ₦12. Long-term investors seeking exposure to Nigeria’s growing banking sector may consider this stock for capital appreciation and dividend income.”, says the Report
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Commenting on the Bank’s progress in meeting the new recapitalization target, Oseni expressed full confidence, reiterating Wema Bank’s commitment to providing optimum value for its stakeholders reassuring that the Offer provides shareholders with the opportunity to increase their stakes in the Bank, positioning themselves for enhanced dividends and returns.
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Wema Bank had reported a profit before tax of N102.51 billionfor the period ended December 31, 2024, over the N43.59 billion recorded in the corresponding period in 2023, representing an increase of 135 percent. The bank also proposed a dividend of N1 per share on the back of the impressive result. The Bank’s balance sheet remained well structured, diversified,and resilient, with total assets growing by 60 percent to N3.585 trillion in FY 2024 from N2.240 trillion in FY 2023.
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Wema Bank, one of the oldest indigenous banks in Nigeria, is implementing its recapitalization and growth strategy to play big and remain at the forefront in the nation’s banking industry post-recapitalization.
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Oseni-led management has repositioned the Bank for growth and profitability, which has manifested in the strong fundamentals and prospects of good financial results.
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