Zenith Bank secures landmark N350.4bn in oversubscribed rights issue, public offer

Zenith Bank Plc has successfully raised a total of N350.4 billion through its recently concluded hybrid Rights Issue and Public Offer, solidifying its position as a leader in Nigeria’s financial sector.

The announcement, made in a statement released to the Nigerian Exchange (NGX) Group on Sunday, January 26, 2025, revealed the bank’s accomplishment in securing full regulatory approval from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for the groundbreaking transaction.

The Hybrid Offer comprised a Rights Issue of 5,232,748,964 Ordinary Shares at N36.00 per share and a Public Offer of 2,767,251,036 Ordinary Shares at N36.50 per share.

The Rights Issue was oversubscribed by 100.18%, with all 5,232,748,964 shares allotted. Meanwhile, the Public Offer experienced overwhelming interest, achieving a 160.47% subscription rate, resulting in the allotment of 4,440,587,250 shares as verified by the CBN’s Capital Verification Exercise.

Dame (Dr.) Adaora Umeoji, OON, Group Managing Director/Chief Executive of Zenith Bank Plc, lauded the exceptional success of the transaction, stating:

“The success of our combined Rights Issue and Public Offering is a testament to the strong confidence and trust that our shareholders, investors, and stakeholders have in Zenith Bank’s vision, strategy, and brand. This landmark transaction underscores our commitment to strengthening our capital base, enhancing our competitive edge, and positioning ourselves for sustainable growth and profitability.

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“We deeply appreciate the invaluable support of our regulators, the Central Bank of Nigeria and the Securities and Exchange Commission, for their guidance in ensuring the integrity and efficacy of this exercise. This successful transaction will enable us to continue delivering value to our stakeholders while contributing to the growth and development of the economy.”

This successful capital raise also positions Zenith Bank as one of the few Nigerian financial institutions to surpass the CBN’s N500 billion minimum capital requirement for banks with international authorization, well ahead of the March 2026 regulatory deadline. The Bank’s share capital now stands at N614.65 billion, exceeding the regulatory minimum by N114.65 billion.

The Hybrid Offer, which opened on August 1, 2024, and closed on September 23, 2024, aimed to raise N290 billion but exceeded expectations due to strong domestic and international investor participation. The largely digital offering leveraged the Nigerian Exchange Limited’s e-Offer platform, setting a new benchmark for capital market accessibility in Nigeria.

The oversubscription of the Hybrid Offer signals robust investor confidence in Zenith Bank’s strategic vision and operational excellence. With this new capital injection, the Bank is poised to drive innovation, achieve sustainable growth, and maintain its leadership position in the financial sector while significantly contributing to Nigeria’s economic development.