Zenith Bank has announced plans to raise N290 billion in fresh capital through a combination of rights issues and a public offer. This move is part of the bank’s strategy to support its expansion efforts and strengthen its operations both in Nigeria and internationally.
The capital raise involves the issuance of 5.23 billion shares at N36 each to existing shareholders, and 2.77 billion shares at N36.50 each to the public. The announcement was made by Adaora Umeoji, the Group Managing Director and CEO of Zenith Bank Plc, during a presentation on the “facts behind the combined offer by Zenith Bank Plc” on Monday.
Umeoji explained that the bank is offering new shares to existing shareholders through a rights issue, where shareholders can buy one new share for every six they already hold. These shares are priced at N36 each. Additionally, Zenith Bank is making 2.77 billion shares available to the general public at a slightly higher price of N36.50 per share.
She emphasized that the bank is committed to maintaining its current shareholding structure, which is why 65% of the new shares are reserved for existing shareholders, with the remaining 35% available to the public. “We are very conscious of not diluting our existing shareholding structure, which is why we are offering 65 per cent to our existing shareholders and 35 per cent to the public,” Umeoji said.
The funds raised from this capital initiative will be directed toward several key areas. A significant portion, about 35%, will be used to expand Zenith Bank’s presence across Africa and other regions. This includes plans to launch operations in Paris, which will serve as a hub for the bank’s activities in the African Francophone market, starting with Cote d’Ivoire and Cameroon.
Zenith Bank already has subsidiaries and representative offices in countries like Ghana, Sierra Leone, Gambia, the UK, the UAE, and China. The new Paris office will further enhance the bank’s ability to serve the African Francophone region and strengthen its international footprint.
In addition to expanding its geographic presence, Zenith Bank plans to allocate 20% of the funds raised to enhancing its IT infrastructure and digital capabilities. This investment will support the bank’s efforts to stay at the forefront of technological advancements and improve its service delivery to customers.
The remaining 45% of the capital will be used as working capital to support the real sector of the economy, with a particular focus on the retail and SME segments. This move aligns with the bank’s commitment to driving economic growth and providing financial support to businesses across Nigeria.
The capital raise has been praised by key industry leaders, including Temi Popoola, the CEO of Nigeria Exchange Group, who highlighted the strategic importance of this initiative. “This initiative is aligned with our vision to expand our market presence and deliver superior value to our shareholders,” he said.
Jude Chiemeka, the CEO of Nigeria Exchange Limited, also commended Zenith Bank for its strong corporate governance, noting that the bank’s listing on the premium board of the exchange reflects its commitment to high standards and its appeal to international investors.
Zenith Bank’s N290 billion capital raise is a strategic move designed to fuel the bank’s growth and expansion efforts, enhance its digital capabilities, and support the real sector of the Nigerian economy. Shareholders and the public alike will be watching closely as the bank embarks on this next phase of its development.
