By Barnabas Esiet.
Zenith Bank Plc has announced plans to raise N289 billion in capital to support its strategic expansion, IT infrastructure development, and financing for the real sector, focusing on retail and SME segments.
The bank aims to issue a combined offer of eight billion shares, comprising a rights issue and public offer.
The rights issue offers 5.23 billion units of shares at N36.00 per share to existing shareholders, while the public offer presents 2.77 billion ordinary shares at N36.50 per share.
The offer, which opened on August 1, 2024, is expected to close on September 9, 2024.
The bank plans to use the proceeds to increase its capital base, pursue strategic objectives, finance business developments, and expand into new geographic markets.
A significant portion of the funds will be used to enhance IT infrastructure, provide working capital, and support the real sector.
Zenith Bank’s Group Managing Director, Dr. Adaora Umeoji, highlighted the bank’s track record of efficient capital utilization and its commitment to solidifying its presence in key global financial hubs.
The bank aims to establish a branch in Paris, France, to enhance business prospects within the West African Economic and Monetary Union (UEMOA) and Economic and Monetary Community of Central Africa (CEMAC) regions.
Umeoji emphasized the bank’s strong brand loyalty position and its achievement of Tier-1 capital of N1.9 trillion, the highest in the Nigerian banking industry.
She also noted the bank’s consistent dividend payout trend, with a dividend of N4.00 per share, making it the highest dividend-paying bank in Nigeria.
The Chairman of Nigerian Exchange, Ahonsi Unuigbe, commended Zenith Bank’s consistent demonstration of relevance in the financial services landscape and its positioning for sustainable long-term growth.
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