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.