Wema Bank Opens Its Rights Issue
4 Customs Street: 18 Dec 2023
Good Morning 😃
Welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.
The newsletter is divided into two parts:
Green White Green is focused on the Nigerian stock market.
Star-Spangled Banner is focused on the US stock market.
Green White Green Last Week
MTN Nigeria has raised N72.1 billion through the issuance of commercial papers. Proceeds will be used for short-term working capital requirements.
Wema Bank’s rights issue
Wema Bank’s rights issue opened last week. A rights issue is when a firm sells shares to existing shareholders.
The bank is selling 8,572,103,573 shares at N4.66 per share based on 2 new shares for every 3 shares held as of September 28, 2023. All things being equal, the bank should raise N39.1 billion (following the deduction of the offer costs estimated at N785 million).
What’s the bank going to use the funds for? Increase lending capacity to the Small and Medium Enterprise (SME) sector, deepen its retail and commercial loan portfolio, and strengthen its digital banking platform (ALAT).
The offer will close on December 29, 2023.
Inflation remains a headache
In November 2023, the headline inflation rate increased by 0.87% to 28.20% relative to October 2023 headline inflation rate, which was 27.33%. Looking at the movement, the November 2023 headline inflation rate showed an increase of 0.87% points when compared to October 2023 headline inflation rate.
Green White Green This Week
Vitafoam will be holding a board meeting to consider FY 23 numbers, dividends, and other matters.
Star-Spangled Banner Last Week
Last week, stocks closed on a high, driven by indications that the United States Fed (central bank) will lower interest rates four times next year. Lower interest rates mean investors have to take more risk to earn higher returns.
Star-Spangled Banner This Week
It is less than 8 days to Christmas, and it is going to be a fairly quiet week on Wall Street. FedEx and Nike are some of the few prominent names releasing their quarterly earnings during the week.
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