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Zenith Bank raises N290bn offer to drive growth, expand global operations
Zenith Bank Plc is raising N290 billion through a combination of a rights issue and a public offer. The offer, which opened on 1 August, 2024, is expected to close on 9 September, 2024.
The rights issue offers 5.233 billion ordinary shares of 50 kobo each at N36.00 per share, while the offer for subscription presents 2.767 billion ordinary shares of 50 Kobo each at N36.50 per share.
The bank said the hybrid offers will be used for the growth and expansion of its global operation.
Dr. Adaora Umeoji, the Group managing director/CEO of Zenith Bank, who spoke on the floor of Nigerian Exchange recently,
said that the bank is looking to solidify its presence in key global financial hubs while supporting its clients’ international operations and investments.
She noted that that the bank is undertaking the offer to increase its capital base in line with the new minimum capital requirement and also to enable it to pursue its strategic objectives, including financing its strategic business developments and expansion into other geographic markets in order to make quality banking more accessible.
Dr. Umeoji mentioned that it will also enable the bank to conclude the overhaul of its information technology infrastructure and provide additional working capital to support its expanding operations and enable the Bank to take maximum advantage of emerging opportunities.
“Zenith Bank is looking to solidify its presence in key global financial hubs while supporting its clients’ international operations and investments.
“A significant milestone in the bank’s expansion plan is the upcoming establishment of a branch in Paris, France. This new branch, she stated, would be a critical bridge for enhancing business prospects within the West African Economic and Monetary Union (UEOMA) and Economic and Monetary Community of Central Africa (CEMAC) regions,” the GMD said.
She explained that the bank will leverage the Paris branch to consolidate most of its businesses in the Francophone African countries, starting from Cameroon and Côte d’Ivoire.
“With over three decades of operation, Zenith Bank has developed a strong brand loyalty position as preferred banking partner for many Nigerians.
“The Bank as at December 31, 2023 achieved Tier-1 capital of N1.9 trillion, the highest in the Nigerian banking industry; shareholders’ funds stood at N2.3 trillion and a market capitalization of N1.3 trillion.
“The Bank achieved profit before tax of N796 billion, making us the most profitable bank in Nigeria and has paid a dividend of N4.00 per share, making the Bank the highest dividend paying bank in Nigeria,” she explained.
On his part, Ahonsi Unuigbe, Chairman of Nigerian Exchange, said, “With a capital base of N1.8 trillion as of December 2023, Zenith Bank has consistently demonstrated its relevance in the financial services landscape in our country.
“The bank has positioned its business for sustainable long-term growth. With over 30 years in existence, founded in January 1990 and listed on our exchange in 2004, Zenith Bank has continuously expanded its operations, both within and beyond.”
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