Zenith Bank Plc is set to raise N290bn through a combination of a Rights Issue and a Public Offer in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN). This announcement was made during the Zenith Bank Rights Issue/Public Offer Signing Ceremony held recently in Lagos This event marks a significant milestone in the bank’s previously announced capital-raising programme, aimed at bolstering its capital base and supporting its growth trajectory across its banking and non-banking subsidiaries.
The Rights Issue offers 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share, while the Offer for Subscription presents 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share. The Rights Issue allows existing shareholders to purchase additional shares in proportion to their current holdings. It is being offered based on one new ordinary share for every six existing shares held as of July 24, 2024. Conversely, the public subscription offer is open to the general public and aims to attract new investors.
Speaking at the signing ceremony, the Group Managing Director/CEO of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON, expressed enthusiasm about the Rights Issue and Public Offer, stating, “Today, we signed the transaction documents concerning Zenith Bank’s N290bn Rights Issue and Public Offer. This is slightly above the N230bn required for us to meet the CBN’s minimum recapitalisation requirement.
We are pleased with the enthusiasm we have already seen from our existing shareholders for the Rights Issue. Beyond existing shareholders, incorporating a public offer is crucial to ensure that our customers, who are not yet shareholders, can have the opportunity to join in the ownership of this premium brand.
“Regarding Tier-1 Capital, Zenith Bank has been adjudged by The Banker, Financial Times to be number one in Nigeria and the only Nigerian Bank in the top 600 banks globally. Over the years, we have consistently rewarded our esteemed shareholders. Specifically, in the last five years, we have maintained the record as the highest dividend-paying Bank in Nigeria. In 2023, we set a record as the only Nigerian Bank to pay a dividend of N4 per share.” She added that the proceeds from the capital raise will be channelled towards expanding banking operations across Africa and internationally, investing in technology infrastructure, and supporting working capital on an ongoing basis. She expressed optimism that given Zenith Bank’s track record of profitability and consistency in creating wealth for shareholders, the capital raise will be a resounding success. She assured prospective investors that Zenith Bank would maintain its leadership in dividend payout in the years ahead and encouraged them to invest in value and invest in Zenith Bank.
She also expressed her profound gratitude to the Founder and Chairman, Dr Jim Ovia CFR, whose vision over 34 years ago laid the foundation for a reputable, dominant, globally recognised financial institution known for innovation, superior performance, and creating premium value for all stakeholders.
