Zenith Bank Plc has revealed that it’s ongoing hybrid offer targets to raise N289 billion in capital as part of efforts to meet the N 500 billion recapitalization requirements of the Central Bank of Nigeria, CBN, support its strategic growth and expansion of its IT Infrastructure.
The combined offer of eight billion shares, comprising a rights issue of 5.23 billion units of shares at N36.00 per share to existing shareholders, and the public offer of 2.77 billion ordinary shares at N36.50 per share presented to the existing as well as prospective shareholders.
Speaking att the ‘Facts Behind the Offer’s exercise on the Lagos Floor of the Nigerian Exchange Group (NGX), Monday, Group Chief Executive Officer of Zenith Bank, Dr. Adaora Umeoji, said the bank plans to deploy the proceeds to increase its capital base, pursue strategic objectives, finance business developments in the real sector, focusing on retail and SME segments
and expansion into new geographic markets.
She further revealed that the bank aims to establish its presence in Paris, France, to enhance business prospects within the West African Economic and Monetary Union (UEMOA) and Economic and Monetary Community of Central Africa (CEMAC) regions, insisting that this move will enable the bank make serious incursions into the Francophone West African states
A significant portion of the funds she equally explained will be used to boost IT infrastructure, provide working capital, and support the real sector.
Whilst highlighting the bank’s track record of efficient capital utilization and its commitment to solidifying its presence in key global financial hubs, Dr. Adaora Umeoji,
emphasized the bank’s strong brand position and achievement of Tier-1 capital of N1.9 trillion being the highest in the Nigerian banking industry so far.
She also noted the bank’s consistent track record of dividend payout, with a dividend of N4.00 per share for the 2023 financial year end, making it the highest dividend-paying bank in Nigeria.
The Chairman of Nigerian Exchange, Ahonsi Unuigbe, in his opening remarks commended Zenith Bank’s consistent demonstration of resilience and relevance in the financial services sector and its positioning for sustainable long-term growth.
Meanwhile, the offer, which opened on August 1, 2024, is expected to close on September 9, 2024.