Wema Bank share price gains 187% in March 2022

Wema Bank Plc share price gained a total of 187.36% month-on-month, starting at N0.96 to close the month at N2.76 per share.

This comes after trading in the bank’s shares was suspended by the Nigerian Exchange Limited as a result of a share reconstruction exercise by the board of the bank.

The bank’s shares stopped trading on Tuesday, March 8, 2022, and were last traded at N0.92 per share before the suspension by the NGX.

The share reconstruction program, pushed for by the bank’s board of directors, entailed the reduction of the issued and fully-paid shares of Wema Bank so as to allow for the raising of additional capital for the organization through available means approved by shareholders.

• The board of directors moved for the reduction of the issued and fully-paid shares of Wema Bank to allow for the raising of additional capital for the organisation through available means approved by shareholders.
• Accordingly, Wema Bank shares were merged in a ratio of 3:1, that is, every three of its shares were merged into one and this reduced the issued and fully-paid shares from 38,574,466,082 units to 12,858,155,360 units at the end of the exercise.
• Following the completion of the exercise, the board of directors have been authorised to raise capital of up to NGN40,000,000,000 by way of a rights issue to the existing shareholders of the Bank by issuing two new shares for every three shares held in the reconstructed capital of the Bank, subject to obtaining relevant regulatory approvals.

This was contained in a disclosure filed with the exchange on January 4, 2022.

What you should know

• Wema Bank Plc has released its Audited 2021 financial results for the period ended 31 December 2021, reporting a profit of N8.93 billion, representing a 95% growth year on year. Interest Income of N74.80 billion was reported in the full-year period compared to N64.55 billion in the same period of 2020.
• Earnings per share was recorded as N0.23 kobo against N0.12 kobo recorded in the corresponding period of 2020.
• Year-to-date, the company’s shares have appreciated by 283.33% from N0.72 at the beginning of the year to N2.76 as at the time of writing this report.