Zenith Bank to raise N290bn via rights issue, public offer

Zenith Bank Plc has announced its readiness to raise N290 billion 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).

The announcement was made at the Zenith Bank Rights Issue/Public Offer signing ceremony in Lagos on Monday, July 29, 2024.

According to the bank, 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.

Zenith Bank noted that the Rights Issue affords existing shareholders the opportunity to purchase additional shares in proportion to their current holdings and is being offered on the basis of one new ordinary share for every six existing ordinary shares held as of Wednesday, July 24.

Speaking at the signing ceremony, the Group Managing Director/CEO of Zenith Bank Plc, Dr Adaora Umeoji, expressed enthusiasm about the Rights Issue and Public Offer, stating: “Today (Monday), we signed the transaction documents with respect to 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.”

Zenith Bank emerges best commercial bank, best corporate governance in Nigeria

Umeoji 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 also expressed optimism that Zenith Bank, following its 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 will maintain its leadership in dividend payout in the years ahead, urging them to invest in value and invest in the bank.

The Chief Executive of Stanbic IBTC Capital Limited, Oladele Sotubo, commended the management of Zenith Bank for their commitment to the transaction, which he said provides an opportunity for existing shareholders to consolidate their position and welcomes new investors to join the journey towards the future of Zenith Bank.

Sotubo also expressed gratitude for the opportunity for Stanbic IBTC Capital Limited to lead and guide the execution of the transactions.

According to Zenith Bank, the lead issuing house for the Rights Issue and Public Offer is Stanbic IBTC Capital Limited, with joint issuing houses including Quantum Zenith Capital and Investments Limited, CardinalStone Partners Limited, Meristem Capital Limited, Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited and Vetiva Advisory Services Limited.

The bank further stated that the Offer will open on Thursday, August 1, and close on Monday, September 9, 2024.

The Star