Zenith Bank Plc moves to raise N290 billion through a combination of public offer and a Rights Issue this is in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN).<\/p>\n
This was announced during the Zenith Bank Rights Issue\/Public Offer Signing Ceremony held on 29th July 2024, at The Civic Centre, Victoria Island, Lagos.<\/span><\/p>\n This event marks a significant milestone in the bank\u2019s previously announced capital-raising programme, aimed at bolstering its capital base and supporting its growth trajectory across its banking and non-banking subsidiaries.\u00a0<\/span><\/p>\n The Rights Issue offers 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share, while the Offer for Subscription presents 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share. The Rights Issue\u00a0affords\u00a0<\/span>existing\u00a0<\/span>shareholders the opportunity to\u00a0<\/span>purchase\u00a0<\/span>additional\u00a0<\/span>shares in proportion to their current holdings<\/span>\u00a0and is being\u00a0<\/span>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.<\/span>\u00a0<\/span><\/p>\n Speaking at the signing ceremony, the Group Managing Director\/CEO of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON, expressed enthusiasm about the Rights Issue\u00a0and\u00a0Public Offer, stating, \u201cToday, we signed\u00a0the transaction documents with respect to Zenith Bank\u2019s\u00a0N290 billion Rights Issue and Public Offer. This is slightly above the N230 billion required for us to meet the CBN\u2019s\u00a0minimum\u00a0recapitalisation 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.\u00a0<\/span><\/p>\n \u201cIn terms of Tier-1 Capital, Zenith Bank has been adjudged by The Banker, Financial Times to be\u00a0n<\/span>umber one in Nigeria and the only Nigerian Bank in the\u00a0<\/span>t<\/span>op 600 banks globally. Over the years, we have consistently rewarded our esteemed shareholders.\u00a0<\/span>Specifically<\/span>, in the\u00a0<\/span>l<\/span>ast 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.\u201d She added that 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. She expressed optimism that given Zenith Bank\u2019s track record of profitability and consistency in creating wealth for shareholders, the capital raise will be a resounding success. She assured prospective investors that Zenith Bank will maintain its leadership in dividend payout in the years ahead and encouraged them to invest in value and invest in Zenith Bank.\u00a0<\/span>\u00a0<\/span><\/p>\n She also expressed her profound gratitude to the Founder and Chairman, Dr. Jim Ovia CFR, whose vision over 34 years ago laid the foundation for a reputable, dominant, globally recognised financial institution known for innovation, superior performance, and the creation of premium value for all stakeholders.\u00a0<\/span><\/p>\n The Chief Executive of Stanbic IBTC Capital Limited, Mr. Oladele Sotubo, commended the management of Zenith Bank for their commitment to the transaction, which provides an opportunity for existing shareholders to consolidate their position and welcomes new investors to join the journey towards the future of Zenith Bank. He also expressed gratitude for the opportunity for Stanbic IBTC Capital Limited to lead and guide the execution of the transactions. Speaking further, he said, \u201cA combined offer that is both a Rights Issue and a Public Offer confirms Zenith Bank\u2019s position as a pacesetter and a role model, which will undoubtedly spur more transactions in the capital market.\u201d\u00a0<\/span><\/p>\n The lead issuing house for the Rights Issue\u00a0and Public\u00a0Offer is Stanbic IBTC Capital\u00a0Limited, with joint issuing houses including Quantum Zenith\u00a0Capital & Investments Limited, Cardinal Stone Partners Limited, Meristem Capital Limited, Chapel Hill Denham Advisory Limited,<\/span>\u00a0Coronation<\/span>\u00a0Merchant Bank Limited<\/span>\u00a0and Vetiva<\/span>\u00a0Advisory Services Limited<\/span>. The Offer will open on Thursday, August 1, 2024, and close on Monday, September 9, 2024.<\/span>\u00a0<\/span><\/p>\n Zenith Bank has provided a robust suite of platforms for the Rights Issue and Public Offer. Applications can be made through any of Zenith Bank\u2019s electronic channels: Zenith Bank Internet Banking, Zenith Bank Mobile Application, Zenith Bank Corporate Internet Banking, Zenith Bank Branches nationwide and NGX Invest platform.\u00a0\u00a0<\/span><\/p>\n