Zenith Bank to raise N290bn through rights issue, public offer

Zenith Bank Plc has announced its plan to raise N290 billion via a combination of a Rights Issue and a Public Offer, aligning with the revised minimum capital requirements set by the Central Bank of Nigeria (CBN).

The announcement was made during the Zenith Bank Rights Issue/Public Offer Signing Ceremony held on July 29, 2024, at The Civic Centre, Victoria Island, Lagos.

This event signifies a key milestone in the bank’s capital-raising initiative, aimed at enhancing its capital base and supporting its growth across its banking and non-banking subsidiaries.

The Rights Issue will offer 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share, while the Public Offer will present 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, offered on the basis of one new ordinary share for every six existing ordinary shares held as of July 24, 2024. The Public Offer is open to the general public, aiming to attract new investors.

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At the signing ceremony, Group Managing Director/CEO of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON, expressed excitement about the initiative, stating, “Today, we signed the transaction documents for Zenith Bank’s N290 billion Rights Issue and Public Offer.

This exceeds the N230 billion required to meet the CBN’s minimum recapitalisation requirement.

“We are extremely pleased with the enthusiasm 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 join in the ownership of this premium brand.

“In terms of Tier-1 Capital, Zenith Bank has been recognized by The Banker, Financial Times as 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, maintaining 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 would be used to expand banking operations across Africa and internationally, invest in technology infrastructure, and support ongoing working capital.

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She expressed confidence that the capital raise would be a success, given Zenith Bank’s track record of profitability and wealth creation for shareholders. She assured investors of continued leadership in dividend payouts and encouraged them to invest in Zenith Bank.

Dame (Dr.) Umeoji also thanked the Founder and Chairman, Dr. Jim Ovia CFR, for his vision that established Zenith Bank as a globally recognized financial institution known for innovation, superior performance, and premium value creation.

The Chief Executive of Stanbic IBTC Capital Limited, Mr. Oladele Sotubo, praised Zenith Bank’s management for their commitment to the transaction, which offers existing shareholders the opportunity to consolidate their position and welcomes new investors.

He noted, “A combined offer of a Rights Issue and a Public Offer confirms Zenith Bank’s role as a pacesetter in the capital market.”

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 August 1, 2024, and close on September 9, 2024.

Zenith Bank has provided various platforms for the Rights Issue and Public Offer, allowing applications through Zenith Bank Internet Banking, Zenith Bank Mobile Application, Zenith Bank Corporate Internet Banking, Zenith Bank Branches nationwide, and the NGX Invest platform.

The electronic channels democratize the distribution of public offers and rights issues, enabling investors to subscribe with ease.