Adaora: Zenith Bank to Experience Exponential Growth with N289.4bn Fresh Capital
The Group Managing Director/CEO of Zenith Bank, Dr. Umeoji Adaora, expressed strong confidence in the bank’s N289.4 billion recapitalization initiative, stating that it is set to significantly enhance the bank’s financial performance and increase returns for shareholders.
In compliance with the Central Bank of Nigeria's (CBN) directive, Zenith Bank is issuing 5.23 billion new ordinary shares at N36 per share through a rights issue, offering one new share for every six ordinary shares held by existing shareholders. Additionally, the bank is raising 2.77 billion ordinary shares at N36.50 per share through a public offering, bringing the total capital raised to N289.44 billion.
Speaking during the "Facts Behind the Offer" event in Lagos, Adaora highlighted Zenith Bank’s commitment to its shareholders and prospective investors, emphasizing that the bank’s combined offering was designed to cater to both groups while maintaining the existing shareholding structure, with 65% allocated to existing shareholders and 35% to the public.
“We are confident that this recapitalization will drive exponential growth for the bank, ultimately providing greater value to our shareholders,” she said.
Adaora detailed that 35% of the proceeds from the capital raise will be used to fund Zenith Bank’s expansion strategy across Africa and globally. Another 20% will be allocated to enhancing the bank’s IT infrastructure and digital capabilities, while the remaining 45% will be utilized as working capital to support the real sector, particularly in the retail and SME segments.
She also noted the bank’s strategic expansion plans, which include leveraging its new Paris subsidiary to strengthen its presence in the African Francophone region, starting with Côte d'Ivoire and Cameroon. She emphasized that all of Zenith Bank’s subsidiaries are profitable, contributing nearly 20% to the Group’s overall performance.
Adaora underscored the importance of technology to Zenith Bank’s operations, revealing that the bank has overhauled its IT infrastructure with top-tier technology to enhance its processes and services. The bank’s FinTech subsidiary, ZenPay, is also positioned to revolutionize the financial services landscape with its comprehensive digital payment platform.
Adaora praised Zenith Bank’s Chairman, Dr. Jim Ovia, for his vision and dedication to positioning the bank as a leader in shareholder value, with strong capital buffers, enabling the bank to raise the least amount among Tier-1 banks in the recapitalization exercise.
Earlier, the Chairman of NGX Limited, Mr. Ahonsi Unuigbe, commended Zenith Bank’s impressive growth and the longstanding, mutually beneficial relationship between the bank and the NGX. He emphasized NGX’s commitment to protecting investor interests through rigorous oversight and maintaining a transparent and conducive market environment.
The Chief Executive Officer of NGX Group Plc, Mr. Temi Popoola, also praised Zenith Bank’s plan to enhance its digital infrastructure and support its retail and corporate banking segments, noting that this aligns with NGX’s vision to expand market presence and deliver superior shareholder value.
In his remarks, NGX CEO Mr. Jude Chiemeka lauded Zenith Bank for its strong corporate governance, which has attracted international investors and driven the exchange to new heights. He highlighted that the NGX is a multi-asset exchange with the technology and infrastructure necessary to facilitate capital raises, having facilitated N5.7 trillion across various asset classes year-to-date.
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