By Barnabas Esiet.
Zenith Bank Plc is poised to embark on a significant capital-raising exercise, seeking to generate N290 billion through a combination of a Rights Issue and a Public Offer.
This move is in line with the Central Bank of Nigeria’s (CBN) revised minimum capital requirements for commercial banks.
The announcement was made during a signing ceremony held on July 29, 2024, at The Civic Centre, Victoria Island, Lagos.
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.
Existing shareholders will have the opportunity to purchase additional shares in proportion to their current holdings, while the Public Offer will be open to the general public, aiming to attract new investors.
Speaking at the ceremony, the Group Managing Director/CEO of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, expressed enthusiasm about the capital-raising exercise, highlighting the bank’s commitment to bolstering its capital base and supporting its growth trajectory.
She emphasized the importance of incorporating a public offer to ensure that customers who are not yet shareholders can participate in the ownership of the bank.
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.
Umeoji expressed optimism about the success of the capital raise, citing Zenith Bank’s track record of profitability and consistency in creating wealth for shareholders.
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.
Others are; 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 a range of electronic platforms for the Rights Issue and Public Offer, including internet banking, mobile application, corporate internet banking, and branch networks nationwide.
The NGX Invest platform https://invest.ngxgroup.com will also be available for applications.
The electronic channels aim to democratize the distribution of public offers and rights issues in the capital market, enabling investors to subscribe with ease.
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