Zenith Bank opens N290bn rights issue

By Abass Ganiyu

By Ajileye Modupe 

Zenith Bank Plc is set to raise N290 billion through a combination of a rights issue and a public offer in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN).

The Offer will open on Thursday, August 1, 2024, and close on Monday, September 9, 2024.

This announcement was made during the Zenith Bank rights issue/public offer signing ceremony held on July 29, 2024, in Lagos. This event marks a significant milestone in the bank’s previously announced capital-raising programme, aimed at bolstering its capital base and supporting the growth trajectory across its banking and non-banking subsidiaries.

The rights issue offers 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share, while the public offer for subscription presents 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share. The rights issue affords existing shareholders the opportunity to purchase additional shares in proportion to their current holdings and is being offered on the basis of one new ordinary share for every six existing ordinary shares held as of Wednesday, July 24, 2024.

Conversely, the public offer for subscription is open to the general public and aims to attract new investors.

Speaking at the signing ceremony, Dame Adaora Umeoji, group managing director/CEO of Zenith Bank Plc, expressed enthusiasm about the rights issue and public offer, stating, “Today, we signed the transaction documents with respect to Zenith Bank’s N290 billion Rights Issue and Public Offer. This is slightly above the N230 billion required for us to meet the CBN’s minimum recapitalisation requirement. We are extremely pleased with the level of enthusiasm we have already seen 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 have the opportunity to join in the ownership of this premium brand.

“In terms of Tier-1 Capital, Zenith Bank has been adjudged by The Banker, Financial Times to be 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. Specifically, in the last five years, we have maintained 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.”

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