Zenith Bank Plc is poised to embark on a significant capital-raising exercise to generate N290 billion through a combination of Rights Issue and Public Offer.
The senior management team of the bank, comprising the Group Managing Director and executive directors, who announced the offer during a signing ceremony in Lagos, said the move is in line with the Central Bank of Nigeria’s (CBN) revised minimum capital requirements for commercial banks in the country.
The Rights Issue will offer 5,232,748,964 ordinary shares of 50Kobo each at N36.00 per share, while the Public Offer will present 2,767,251,036 ordinary shares of 50Kobo each at N36.50 per share.
Existing shareholders will be able 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, Group Managing Director and Chief Executive Officer (MD/CEO) of Zenith Bank Plc, 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 bank ownership.
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.
Citing Zenith Bank’s track record of profitability and consistency in creating wealth for shareholders in the financial services sector, Umeoji expressed the hope that the capital raise will be a huge success.
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The lead issuing house for the Rights Issue and Public Offer is Stanbic IBTC Capital Limited, with joint issuing houses including Quantum Zenith Capital and Investments Limited, CardinalStone Partners Limited and 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 applications, 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.
PHOTO CAPTION FOR ZENITH BANK STORY
Executive Director, Zenith Bank Plc, Louis Odom (right); Executive Director, Akin Ogunranti; Chief Executive, Stanbic IBTC Capital Limited, Oladele Sotubo; Group Managing Director and Chief Executive Officer, Zenith Bank Plc, Dr. Adaora Umeoji; Company Secretary, Michael Otu; Executive Director, Stanbic IBTC Capital Limited, Mrs. Oyindamola Akinyemi; Executive Director, Henry Oroh; Executive Director, Mrs. Adobi Nwapa and Executive Director, Adamu Lawani; during Zenith Bank’s capital raising signing ceremony in Lagos
