Zenith Bank Plc has announced an extension of its current rights issue and public offer, which was originally set to close on Monday, September 9, 2024.
The new closing date has been extended by an additional two weeks, to September 23, 2024. This extension was disclosed in a notice to the Nigerian Exchange Limited (NGX). The extension follows approval from the Securities and Exchange Commission (SEC).
Zenith Bank Plc cited the nationwide protests that began on August 1, 2024—the same day the offer was launched—as a key factor for the extension.
The statement reads, “Zenith Bank Plc has extended the acceptance/application lists for its ongoing Rights Issue and Public Offer which were scheduled to close on Monday, 9 September 2024 by two weeks to close on Monday, 23 September 2024. This is following the receipt of approval from the Securities and Exchange Commission.”
It would be recalled that the rights issue and public offer which launched on August 1, 2024, “were disrupted by the nationwide protest that commenced on the same day, which disrupted business operations and individual movement across the country.”
“The decision has been made to provide ample opportunity for shareholders to take up their rights and the general investing public to subscribe to the public offer,” it added.
Zenith Bank Plc had said that a portion of its ongoing N290bn hybrid offer will be allocated toward the growth and expansion of its global operations.
The capital raise is structured through a combination of a rights issue and a public offer.
The bank is offering a rights issue of 5.233 billion ordinary shares at 50 kobo each, priced at N36.00 per share, while the public offer will present 2.767 billion ordinary shares at the same nominal value, priced at N36.50 per share.
The bank has assured its shareholders of enhanced dividend payouts in the future as part of its commitment to delivering value.
At the ‘Facts Behind the Offer Presentation’ held at the Nigerian Exchange, the Group Managing Director/CEO of Zenith Bank, Dr. Adaora Umeoji, emphasized the bank’s strategic focus on strengthening its presence in major global financial centers while supporting the international operations and investments of its clients.
Regarding the allocation of the proceeds, Umeoji explained that the bank aims to bolster its capital base in compliance with the new minimum capital requirements.
This capital injection will enable the bank to pursue its strategic objectives, which include financing strategic business developments and expanding into new geographic markets to make quality banking services more accessible.
Additionally, the capital raised will facilitate the completion of the bank’s information technology infrastructure overhaul. This will provide the necessary working capital to support the bank’s expanding operations and allow it to capitalize on emerging opportunities in the market.
