Dame Adaora Umeoji, the bank’s Group Managing Director/Chief Executive Officer (GMD/CEO), announced in Lagos yesterday that Zenith Bank Plc intended to raise N290 billion through a mix of a rights issue and public offer.
The capital increase is in accordance with the revised minimum capital criteria imposed for commercial banks by the Central Bank of Nigeria (CBN), and she made this statement during the bank’s rights issue/public offer signing.
This action represents a major turning point in the bank’s previously disclosed capital-raising plan, which aims to strengthen the capital basis and growth trajectory of all of its businesses, both banking and non-banking.
While 2,767,251,036 ordinary shares of 50 Kobo each are offered at N36.50 per share in the subscription offer, 5,232,748,964 ordinary shares of 50 Kobo each are offered in the rights issue at N36.00 per share.
As of July 24, it is being sold on the basis of one new ordinary share for every six existing ordinary shares owned, giving current owners the option to purchase more shares in proportion to their current holdings.
On the other hand, the public offer for subscription is accessible to anyone and is meant to draw in new investors. The bank’s GMD/CEO spoke enthusiastically about the rights issue and public offer during the ceremony.
Dame Umeoji said: “Today (yesterday), 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.”
Mame Umeoji clarified that Zenith Bank is the only Nigerian bank in the top 600 banks worldwide and has been ranked first in Nigeria by The Banker and Financial Times in terms of Tier-1 Capital. In addition, we have continuously rewarded our valued stockholders over the years.
“Specifically, in the last five years, the bank had maintained the record as the highest dividend-paying Bank in Nigeria. In 2023, the bank set a record as the only Nigerian Bank to pay a dividend of N4 per share,” Dame Umeoji said.
She stated that the capital raise’s earnings will go toward building up the bank’s operations both domestically and abroad, making investments in technology infrastructure, and continuously supplying working cash.
She was upbeat that the capital increase will be a huge success because of the bank’s history of profitability and reliability in generating money for shareholders.
She urged potential investors to invest in value by investing in Zenith Bank and gave them her word that the bank will continue to lead the industry in dividend payout in the years to come.
Her heartfelt thanks also went out to Jim Ovia, the company’s founder and chairman, whose vision over 34 years ago created the groundwork for a respectable, powerful, internationally recognized financial institution renowned for its innovation, outstanding performance, and ability to create premium value for all stakeholders.
Stanbic IBTC Capital Limited’s Chief Executive, Oladele Sotubo, praised Zenith Bank’s management for their dedication to the deal, which allows current shareholders to strengthen their holdings and invites new investors to join Zenith Bank’s journey towards the future.
Additionally, he conveyed his appreciation for Stanbic IBTC Capital Limited’s ability to direct and oversee the transactions’ execution.
Speaking further, Sotubo said: “A combined offer that is both a Rights Issue and a Public Offer confirms Zenith Bank’s position as a pacesetter and a role model, which will undoubtedly spur more transactions in the capital market.”
Stanbic IBTC Capital Limited is the primary issuing house. CardinalStone Partners Limited, Meristem Capital Limited, Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, Quantum Zenith Capital & Investments Limited, and Vetiva Advisory Services Limited are the joint issuing houses.
August 1st is when the offer will open and end on September 9th.
Zenith Bank has given a broad set of platforms for the Rights Issue and Public Offer. Applications can be made using any of Zenith Bank’s electronic channels: Zenith Bank Internet Banking, Zenith Bank Mobile Application, Zenith Bank Corporate Internet Banking, Zenith Bank Branches nationwide and NGX Invest platform.
