CEM REPORT | The Nigerian Exchange has announced to Trading License Holders and the investing public that trading in the shares of Wema Bank Plc (the Bank) was suspended Tuesday, 8 March 2022.
This is contained in the Nigerian Exchange weekly summary for the week ended 11th March sent to continental Economy Magazine
NGX said the suspension is necessary to prevent trading in the shares of the Bank in preparation for the share reconstruction of the Bank’s issued and fully paid shares from 38,574,466,082 ordinary shares of 50 Kobo each to 12,858,155,360 ordinary shares of 50 Kobo each in the ratio of one (1) for every three (3) shares held.
Wema Bank Plc announced last year of a plan to raise N40 billion via right issues to enhance the bank capital position after its share reconstruction programme, according to resolution at its 2021 Extra-Ordinary General Meeting held on 31st December 2021.
By this reconstruction, each of the shareholders is expected to now relinquish the pro-rata portion of the 25,716,310, issued ordinary shares of ₦0.50 kobo each of the Bank together with all the rights, title and interests attaching thereto, in accordance with the relinquishment ratio and the terms of the Scheme.
A total sum of ₦12,858,155,361 being the value of the relinquished shares is expected to be credited to the Bank’s share premium account, according to court order resolutions.
According African Exchanges, Wema Bank is currently the 38th most valuable stock on the NGX with a market capitalization of NGN 35.5 billion, which is about 0.139% of the Nigerian Stock Exchange equity market.
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WEMABANK closed its last trading day (Monday, March 7, 2022) at 0.92 NGN per share on the Nigerian Stock Exchange (NGX), recording a 1.1% drop from its previous closing price of 0.93 NGN. Wema began the year with a share price of 0.72 NGN and has since gained 27.8% on that price valuation, ranking it 18th on the NGX in terms of year-to-date performance. Shareholders can be optimistic about WEMABANK knowing the stock has accrued 6% over the past four-week period—28th best on NGX.
Wema Bank is the 20th most traded stock on the Nigerian Stock Exchange over the past three months (Dec 10, 2021 – Mar 11, 2022). WEMABANK has traded a total volume of 324 million shares—in 3,186 deals—valued at NGN 268 million over the period, with an average of 5.14 million traded shares per session. A volume high of 25 million was achieved on January 5th for the same period.