Zenith Bank Plc has finalised a plan to raise N290 billion via a Rights Issue and a Public Offer to meet the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN).
For the Rights Issue, the bank will offer 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 on one new ordinary share for every six existing ordinary shares held as of Wednesday, July 24, 2024. The public offer for subscription is however, open to the general public and aims to attract new investors.
The Group Managing Director of Zenith Bank Plc, Adaora Umeoji announced during the Zenith Bank Rights Issue/Public Offer Signing Ceremony on Monday said the exercise marks a significant milestone in the bank’s previously announced capital-raising programme to bolster its capital base and support its growth trajectory across its banking and non-banking subsidiaries.
She expressed enthusiasm about the Rights Issue and Public Offer, stating, “Today, we signed the transaction documents concerning Zenith Bank’s N290 billion Rights Issue and Public Offer. This is slightly above the N230 billion required for us to meet the CBN’s minimum recapitalisation requirement. We are extremely pleased with the level of 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.
“In terms of 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.”
The proceeds from the capital raise will go to expanding banking operations across Africa and internationally, investing in technology infrastructure, and supporting working capital on an ongoing basis. Given Zenith Bank’s track record of profitability and consistency in creating wealth for shareholders, the capital raise is expected to be a success.
The lead issuing house for the Rights Issue and Public Offer is Stanbic IBTC Capital Limited, with joint issuing houses including Quantum Zenith Capital & Investments Limited, CardinalStone Partners Limited, Meristem Capital Limited, Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited and Vetiva Advisory Services Limited.
The Offer will open on Thursday, August 1, 2024, and close on Monday, September 9, 2024.
Zenith Bank has provided a robust suite of platforms for the Rights Issue and Public Offer. Applications can be made through any of Zenith Bank’s electronic channels: Zenith Bank Internet Banking, Zenith Bank Mobile Application, Zenith Bank Corporate Internet Banking, Zenith Bank Branches nationwide and NGX Invest platform.
The Zenith Bank E-Application channels have been integrated into the NGX Invest platform, which can be accessed at https://invest.ngxgroup.com, and are available to all applicants and authorised receiving agents to submit applications on behalf of applicants. The electronic channels democratises the distribution of public offers and rights issues in the capital market, enabling investors to subscribe with the click of a button.
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