Zenith Bank raises N350bn from rights issue, public offer

Zenith Bank Plc has revealed that it raised N350.4bn from its combined rights issue and public offer thus exceeding the N290bn it had sought to raise.

In a statement released to the Nigerian Exchange Group on Sunday, the bank indicated that it has also received regulatory approval from the Central Bank of Nigeria and the Securities and Exchange Commission.

Zenith Bank’s combined offer included a rights issue of 5,232,748,964 Ordinary Shares of 50k each at N36.00 per share and a public offer of 2,767,251,036 Ordinary Shares of 50k each at N36.50 per share. The offer opened on August 1, 2024 and closed on September 23, 2024.

 Both offerings were oversubscribed. While the public offer was 160.47 per cent subscribed, with a total of 4,440,587,250 Ordinary Shares allotted based on the terms of the offer and the CBN’s Capital Verification Exercise, the rights issue was also 100.18 per cent subscribed with a total of 5,232,748,964 ordinary shares allotted.

With this result, Zenith Bank has become one of the few banks in Nigeria to meet and even surpass the CBN’s N500bn minimum capital requirements for Banks with international authorisation well ahead of the March 2026 regulatory deadline. The bank’s share capital will now rise to N614.65bn, which is N114.65bn above the regulatory minimum requirement.

 Speaking on the development, the Group Managing Director/Chief Executive of Zenith Bank Plc, Dr Adaora Umeoji, said, “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.”

 The bank said that the proceeds from the hybrid offer will be used to solidify its “position as the leading financial institution in Nigeria. Additionally, the funds will support the Bank’s expansion into other markets in Africa and Europe, investment in technology and other Group-wide growth initiatives.”

 Also, the offer was successfully executed largely as a digital offer, embracing the power of technology to improve access to the equity capital market as it seamlessly leveraged the Nigerian Exchange Limited’s e-Offer platform, NGX Invest.

 In March 2024, the CBN directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn, while those with regional authorisation are expected to achieve a N50bn capital floor.

Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20bn and N10bn, respectively.