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Key Points
- Wema Bank has launched a $93.7 million rights issue to strengthen its capital base and meet Central Bank of Nigeria's capital adequacy requirements.
- The bank plans to raise N200 billion ($125.21 million) in total, including a private placement, to achieve Systemically Important Bank (SIB) status.
- Kessington Adebutu holds a 28.26% stake in Wema via Neemtree Limited, reinforcing his influence on the bank’s growth and capital strategy.
Wema Bank, a leading financial services provider partly owned by Nigerian gambling magnate Kessington Adebutu, has launched a $93.7 million rights issue to strengthen its capital base and meet the Central Bank of Nigeria’s (CBN) capital adequacy requirements.
This marks the first phase of the bank’s broader plan to raise N200 billion ($125.21 million), which will also include a private placement in the coming months.
Wema Bank's $93.7 million rights issue
The rights issue, worth N149.3 billion ($93.7 million), will see the bank issue 14.29 billion shares at N10.45 ($0.0065) each, offering shareholders two new shares for every three held as of Mar. 5. Set to open on Apr.14, this move is crucial for Wema Bank as it works to attain Systemically Important Bank (SIB) status and meet the CBN’s recapitalization deadline in March 2026.
As part of a wider initiative, the CBN has directed banks to increase their capital thresholds—international banks to N500 billion ($313.04 million), national banks to N200 billion ($125.21 million), and regional banks to N50 billion ($31.29 million). Wema, classified as a national bank, is focused on aligning with the N200 billion target.
The capital raised will boost Wema’s ability to lend to Nigeria’s growing SME, retail, commercial, and corporate sectors. It will also support the bank’s digital transformation, including enhancements to ALAT, its flagship mobile banking platform, which has made significant inroads among Nigeria’s tech-savvy youth.
Adebutu’s stake and Wema Bank’s strong performance
Kessington Adebutu, founder of Premier Lotto Limited, owns a 28.26 percent stake in Wema Bank via Neemtree Limited, a private investment firm set up in 2013 to pursue strategic acquisitions. His daughter, Abolanle Matel-Okoh, also owns a 4.54 percent stake in the lender.
Wema Bank reported a net profit of N88.83 billion ($58.87 million) for the full year 2024—more than double the N35.98 billion ($23.85 million) it recorded in 2023, reflecting a 146.8 percent surge. The bank’s impressive earnings underscore the success of its growth strategy and digital-first positioning.
So far, the bank has raised N40 billion ($26.5 million) in the first phase of its capital-raising efforts. By launching this rights issue, Wema Bank is reaffirming its commitment to financial strength, regulatory compliance, and creating long-term value for its shareholders.
