The Oyo State Government has set aside N691.3 million to participate in Wema Bank Plc’s upcoming rights offerings.
The news was revealed in a press release issued following the April 23, 2024, Oyo State Executive Council meeting.
“The Wema Bank rights issuance programme will receive an investment of N691,307,039.86 as part of the plans to secure Oyo State’s future.”
In terms of Wema Bank’s ownership structure, Neemtree Limited, SW8 Invest Company, and Petrotab Limited control 28.25%, 14.90%, and 8.54% of the bank, respectively, making up strategic shareholders’ 51.69% stake.
The government’s stake in the bank is 8.06%, with Odu’a Investment Company Limited holding the majority of the government’s stake at 7.93% in the bank.
The holding business Odu’a Investment business Limited is held by the state governments of Oyo, Ogun, Ondo, Ekiti, Osun, and Lagos in Southwest Nigeria.
The company operates in several industries, including manufacturing, oil and gas, and real estate. Lagos Airport Hotel, Wemabod Estate, E&O Power and Equipment Leasing, and Western Hotels are some of its subsidiaries. In addition to Wema Bank, it also has stock in Nigerite Limited and Lafarge Africa.
Remember that Wema Bank raised N39.95 billion through a rights issue programme in December 2023, issuing 8,572,103,573 ordinary shares of N0.50 at a price of N4.66 per share.
The bank was able to raise its paid-up share capital to N55.07 billion through its rights offering in December. Even with the CBN’s newly announced paid-up capital requirements, the bank is still far short of the N200 billion paid-up capital needed to maintain its national banking licence.
