Zenith Bank Plc Unveils Hybrid Rights Issue And Public Offer To Raise N290 Billion
In a strategic move to meet the Central Bank of Nigeria’s (CBN) new minimum capital requirement of N500 billion, Zenith Bank Plc has announced a hybrid rights issue and public offer aimed at raising approximately N290 billion. The offer is positioned to unlock substantial value for both existing shareholders and new investors.
The Hybrid Rights Issue and Public Offer includes a Rights Issue of 5.233 billion ordinary shares priced at N36 per share for existing shareholders, along with a Public Offer of 2.767 billion ordinary shares available to the public at N36.50 each. This initiative will enable the bank to not only satisfy the CBN’s capital requirements but also provide additional working capital to support its expanding operations and investments in information technology infrastructure.
Zenith Bank’s current issued and fully paid share capital stands at N15.698 billion, with a share premium of N255.047 billion. The bank seeks an additional N229.225 billion to meet the new regulatory requirements. Dame Dr. Adaora Umeoji, OON, Group Managing Director/CEO of Zenith Bank, expressed confidence in the bank’s strategic direction, stating that this capital infusion will reinforce the bank’s position as a market leader.
For investors, Zenith Bank’s offer presents a lucrative opportunity. The bank’s shares, recently trading as high as N47.35 per share, suggest a potential gain of about 32% for investors participating in the offer. With strong financial metrics and a track record of robust performance, Zenith Bank is poised for continued growth.
In 2023, Zenith Bank emerged as the most profitable listed bank on the Nigerian Exchange Group (NGX), reporting a pre-tax profit of N795.962 billion. The bank’s consistent performance, including a 57% growth in share price over the past five years, solidifies its position as a leading financial institution in Nigeria.
As of the first quarter of 2024, Zenith Bank reported a significant increase in gross earnings, reaching N781 billion, a 189% rise compared to the same period in 2023. This performance indicates a promising trajectory for the bank’s financial success, potentially surpassing previous records by year-end.
Zenith Bank has received numerous accolades, including being named the Best Commercial Bank in Nigeria for the fourth consecutive year by the World Finance Banking Awards. The bank is also recognized for its exemplary corporate governance practices.
Founded by Jim Ovia, CFR, in 1990, Zenith Bank has grown into one of Africa’s leading financial institutions. It remains committed to delivering exceptional customer service and maintaining its position as a top-tier bank on both the Nigerian Stock Exchange and the London Stock Exchange.
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