Zenith bank raises N350bn through rights issue, public offer

Zenith Bank Plc has exceeded expectations by raising N350.4 billion through a combined rights issue and public offer, surpassing its initial target of N290 billion.

Cablenews24 reports that the announcement, made in a statement to the Nigerian Exchange Group on Sunday, highlights the bank’s achievement in meeting the Central Bank of Nigeria’s (CBN) revised minimum capital requirement of N500 billion for banks with international authorization, well ahead of the March 2026 deadline. With the successful capital raise, Zenith Bank’s share capital now stands at N614.65 billion, positioning it as one of the leading banks in the country.

The offering, which ran from August 1 to September 23, 2024, included a rights issue of over 5.2 billion shares at N36.00 per share and a public offer of nearly 2.8 billion shares at N36.50 per share. Both were oversubscribed, with the public offer recording a remarkable 160.47 per cent subscription rate, while the rights issue saw a 100.18 per cent subscription.

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Speaking on the development, the Group Managing Director/CEO of Zenith Bank, Dr. Adaora Umeoji, credited the success to the trust and confidence of shareholders and investors. “The success of our combined rights issue and public offering is a testament to the strong confidence and trust that our shareholders, investors, and stakeholders have in Zenith Bank’s vision, strategy, and brand.

“This landmark transaction underscores our commitment to strengthening our capital base, enhancing our competitive edge, and positioning ourselves for sustainable growth and profitability. We deeply acknowledge the invaluable and strong support of our regulators, the Central Bank of Nigeria and the Securities and Exchange Commission, and are grateful for their guidance in ensuring the integrity and efficacy of the exercise. This successful transaction will enable us to continue delivering value to our stakeholders, while also contributing to the growth and development of the economy,” she said.

The bank revealed that the proceeds would be used to bolster its market position, support expansion into African and European markets, and drive investment in technology and group-wide growth initiatives. Additionally, the largely digital execution of the offering through the Nigerian Exchange Limited’s e-Offer platform reflects the bank’s commitment to leveraging technology to enhance financial access.

This achievement follows the CBN’s March 2024 directive for banks to strengthen their capital base to ensure stability and resilience in the banking sector. Zenith Bank’s proactive approach in exceeding this requirement sets a strong precedent for other financial institutions, emphasizing its leadership in the industry.

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