Olufemi Adeyemi 

Zenith Bank Plc has effectively secured N350.4 billion through a recently completed hybrid Rights Issue and Public Offer, signaling a big step forward in the bank's growth and expansion plans.

In a statement shared with the Nigerian Exchange (NGX) Group on Sunday, the bank revealed that it received full regulatory approval from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for its Hybrid Offer. This included a Rights Issue of 5,232,748,964 Ordinary Shares at 50k each priced at N36.00 per share, along with a Public Offer of 2,767,251,036 Ordinary Shares at 50k each priced at N36.50 per share.

The Public Offer saw an impressive subscription rate of 160.47%, resulting in the allocation of 4,440,587,250 Ordinary Shares according to the Offer's terms and the CBN’s Capital Verification Exercise.

The Rights Issue also performed well, with a subscription rate of 100.18%, leading to the allocation of all 5,232,748,964 ordinary shares.

Dame (Dr.) Adaora Umeoji, the Group Managing Director/Chief Executive of Zenith Bank Plc, praised the achievement, stating, “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 CBN and the SEC, 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,” she said.

The funds from the Hybrid Offer are set to be used strategically to strengthen the Bank’s status as Nigeria's top financial institution. 

These proceeds will also help the Bank expand into other African and European markets, invest in technology, and support various growth initiatives across the Group.

The Offer, which ran from August 1, 2024, to September 23, 2024, aimed to raise N290 billion through a mix of a Rights Issue and an Offer for Subscription. It was a success, primarily conducted digitally, showcasing how technology can enhance access to the equity capital market by utilizing the Nigerian Exchange Limited’s e-Offer platform.

The Hybrid Offer attracted significant interest from both local and international investors, allowing the Bank to become one of the few in Nigeria to meet and exceed the CBN’s N500 billion minimum capital requirement for Banks with International Authorization well before the March 2026 deadline.

As a result, the Bank’s share capital will increase to N614.65 billion, exceeding the regulatory minimum by N114.65 billion.