Olufemi Adeyemi
Zenith Bank has initiated a plan to raise N290 billion in new capital through rights issues and a public offering, aimed at enhancing its expansion initiatives. The bank will issue 5.23 billion shares at N36 each to its existing shareholders, alongside 2.77 billion shares at N36.50 each for the public.
This information was shared by Adaora Umeoji, the Group
Managing Director/Chief Executive Officer of Zenith Bank Plc, during the
presentation titled “Facts Behind the Combined Offer by Zenith Bank Plc” on
Monday.
Umeoji stated, “We are offering approximately 5.23 billion
units of shares of 50 kobo each at N36 per share to our existing shareholders
through a rights issue of one new share for every six held.
Additionally, we are providing 2.77 billion ordinary shares
of 50 kobo each at N36.50 per share to the public via a public offer.” She
further clarified that 65 percent of the shares would be designated for
existing shareholders through the rights issue, while 35 percent would be
accessible to the public through the public offering.
“We are very mindful of preserving our existing shareholding
structure, which is why we are allocating 65 percent to our current
shareholders and 35 percent to the public,” she emphasized.
Umeoji indicated that a substantial portion of the raised
funds would be directed towards expanding the bank's presence in Africa and
other regions, improving IT infrastructure, and supporting the real sector,
with a strategic emphasis on launching operations in Paris to enhance its
footprint in the African Francophone market.
“We currently operate subsidiaries and representative
offices in Ghana, Sierra Leone, Gambia, the UK, UAE, and China, and we have
recently secured a banking license to begin operations in Paris.
We intend to utilize the Paris subsidiary to strengthen our
business in the African Francophone region, starting with Côte d’Ivoire and
Cameroon.
We are highly optimistic that following the ongoing
recapitalization process, the bank will witness significant growth, resulting
in increased value for our shareholders,” she asserted.
It was mentioned that 35% of the funds raised will be
allocated to expanding Zenith Bank’s presence across Africa and other regions
globally. Additionally, 20% of the proceeds will be invested in enhancing
Zenith Bank’s IT infrastructure and digital capabilities.
Furthermore, the remaining 45% of the capital raised will be
utilized as working capital to support the real sector of the economy, with a
specific focus on the retail and SME segments.
The CEO of the Nigeria Exchange Group, Temi Popoola,
emphasized the strategic significance of the capital raise, stating, “This
initiative aligns with our vision to broaden our market presence and provide
exceptional value to our shareholders.”
Additionally, the Chief Executive Officer of the Nigerian
Exchange Limited, Jude Chiemeka, commended the bank for its adherence to
corporate governance principles, which have contributed to the exchange’s
growth and success.
“It is noteworthy that Zenith Bank is listed on our premium
board, signifying their commitment to high standards of corporate governance
and attracting international investors. The robust secondary market that
supports the exchange’s operations further enhances its value and benefits,” he
stated.