Zenith Bank begins N290bn capital raise

Zenith Bank has initiated the process to raise N290 billion in fresh capital through a combination of rights issues and a public offer to support its expansion plans.

The bank is offering 5.23 billion shares at N36 each to existing shareholders and 2.77 billion shares at N36.50 each to the public. This announcement was made by the Group Managing Director/Chief Executive Officer of Zenith Bank Plc, Adaora Umeoji, during the “Facts Behind the Combined Offer by Zenith Bank Plc” event on Monday.

"We are offering approximately 5.23 billion units of shares at N36 per share to our existing shareholders through a rights issue of one new share for every six held. Additionally, we are offering 2.77 billion ordinary shares at N36.50 per share to the public through a public offer," Umeoji stated.

She further explained that 65% of the shares will be allocated to existing shareholders through the rights issue, while the remaining 35% will be offered to the public.

"We are mindful of maintaining our current shareholding structure, which is why we are offering 65% to our existing shareholders and 35% to the public," she added.

Umeoji highlighted that a significant portion of the funds will be directed toward expanding the bank's presence in Africa and other regions, enhancing IT infrastructure, and supporting the real sector. A key strategic focus is launching operations in Paris to strengthen the bank's footprint in the African Francophone market.

"We currently have subsidiaries and representative offices in Ghana, Sierra Leone, Gambia, the UK, UAE, and China, and we have recently obtained a banking license to commence operations in Paris. We will leverage our Paris subsidiary to consolidate our business in the African Francophone region, starting with Côte d'Ivoire and Cameroon.

"We are confident that following this recapitalization exercise, the bank will experience significant growth, providing greater value to our shareholders," she asserted.

Umeoji also outlined that 35% of the funds raised will be used to expand Zenith Bank's presence across Africa and globally, while 20% will be invested in enhancing the bank's IT infrastructure and digital capabilities. The remaining 45% of the capital will be allocated as working capital to support the real sector, with a focus on the retail and SME segments.

The Chief Executive Officer of Nigeria Exchange Group, Temi Popoola, emphasized the strategic importance of the capital raise, stating, "This initiative aligns with our vision to expand market presence and deliver superior value to shareholders."

Jude Chiemeka, the Chief Executive Officer of Nigeria Exchange Limited, praised Zenith Bank for its strong corporate governance, noting, "Zenith Bank's listing on our premium board signifies high corporate governance standards, which attract international investors and support a strong secondary market."