By Ayomide Otitoju
Zenith Bank Plc has launched a major capital-raising initiative to generate N290 billion in fresh funds through a combination of rights issues and a public offer. This move is aimed at bolstering the bank’s expansion efforts both within Africa and internationally.
The bank is offering 5.23 billion shares at N36 each to its existing shareholders and 2.77 billion shares at N36.50 each to the public. This was disclosed by the Group Managing Director/Chief Executive Officer of Zenith Bank, Adaora Umeoji, during the “Facts Behind the Combined Offer by Zenith Bank Plc” event on Monday.
“We are offering approximately 5.23 billion units of shares of 50 kobo each at N36 per share to our existing shareholders through a rights issue of one new share for every six held. Additionally, we are offering 2.77 billion ordinary shares of 50 kobo each at N36.50 per share to the public through a public offer,” Umeoji stated.
She further explained that 65% of the shares would be allocated to existing shareholders via the rights issue, while the remaining 35% would be made available to the public through the public offer. “We are very conscious of not diluting our existing shareholding structure, which is why we are offering 65% to our existing shareholders and 35% to the public,” Umeoji added.
A significant portion of the capital raised will be dedicated to expanding Zenith Bank’s footprint across Africa and other regions. The funds will also enhance the bank’s IT infrastructure and support the real sector, with a particular focus on launching operations in Paris to strengthen its presence in the African Francophone market.
“We currently have subsidiaries and representative offices in Ghana, Sierra Leone, Gambia, UK, UAE, and China, and we recently obtained a banking license to commence operations in Paris,” Umeoji said. “We will leverage the Paris subsidiary to consolidate our business in the African Francophone region, starting with Côte d’Ivoire and Cameroon.”
She expressed confidence that the recapitalization exercise would drive exponential growth for the bank and deliver greater value to shareholders.
In terms of allocation, Umeoji noted that 35% of the funds raised would go toward expanding Zenith Bank’s footprint, while 20% would be invested in enhancing the bank’s IT infrastructure and digital capabilities. The remaining 45% will be deployed as working capital to support the real sector of the economy, with a particular emphasis on the retail and SME segments.
The Chief Executive Officer of the Nigerian Exchange Group, Temi Popoola, emphasized the strategic importance of the capital raise, stating, “This initiative aligns with our vision to expand our market presence and deliver superior value to our shareholders.”
Jude Chiemeka, Chief Executive Officer of Nigeria Exchange Limited, commended Zenith Bank for its corporate governance and its role in driving the exchange to greater heights. “Zenith Bank’s listing on our premium board underscores its high corporate governance standards, attracting international investors and reinforcing the strength of the secondary market,” Chiemeka remarked.
