Zenith Bank Plc, Nigeria’s largest lender, is offering its shares at a discounted price, providing an opportunity for existing shareholders and new investors to benefit from a potential 32% gain in immediate return.
The bank is issuing 5.23 billion ordinary shares at N36 per share, with a rights issue pre-allotted to existing shareholders.
Additionally, 2.77 billion ordinary shares are being offered to the general public at N36.50 per share, with a minimum subscription of 250 shares.
The discounted price is a significant incentive, considering the bank’s shares recently traded as high as N47.35 per share.
The earnings per share of N21.55 for the 2023 business year also indicates a strong performance, with an earnings yield of about 60%.
This suggests that investors can expect significant value creation and long-term returns.
Zenith Bank’s financial performance has been impressive, with a pre-tax profit of N796 billion and profit after tax of N677 billion in 2023.
The bank’s gross earnings crossed two milestones, from N946 billion in 2022 to N2.13 trillion in 2023.
The first quarter 2024 results indicate a continued strong performance, with gross earnings jumping by 189% and profit before tax tripling by 267.8%.
The bank’s awards and recognition, including being adjudged the Best Commercial Bank in Nigeria for the fourth consecutive year, demonstrate its excellence in financial performance, customer service, sustainability initiatives, and corporate governance practices.
With its strong performance, Zenith Bank is poised for continued growth, making the discounted share offering an attractive opportunity for investors.
The bank’s commitment to digital banking and innovative products has also positioned it as a leader in the Nigerian banking industry.
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