Zenith Bank showcases strength with successful raise of over N350 billion through combined offer

Zenith Bank Plc has successfully raised an impressive N350.4 billion through its recent hybrid Rights Issue and Public Offer, according to a statement released to the Nigerian Exchange (NGX) Group. The Bank received full regulatory approval from both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for this endeavor. This offering consisted of a Rights Issue of 5,232,748,964 Ordinary Shares at N36.00 per share and a Public Offer of 2,767,251,036 Ordinary Shares at N36.50 per share.

The Public Offer saw a remarkable 160.47% subscription rate, resulting in allotment of 4,440,587,250 Ordinary Shares based on the offer terms and the CBN’s Capital Verification Exercise. Similarly, the Rights Issue was oversubscribed at 100.18%, leading to an allotment of 5,232,748,964 ordinary shares.

Expressing her satisfaction, the Group Managing Director/Chief Executive of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON, stated, “The success of our combined Rights Issue and Public Offering reflects the strong confidence and trust our shareholders, investors, and stakeholders have in Zenith Bank’s vision, strategy, and brand. This significant transaction underscores our dedication to reinforcing our capital base, improving our competitive edge, and positioning ourselves for sustainable growth and profitability. We appreciate the invaluable support of our regulators, the Central Bank of Nigeria and the Securities, and Exchange Commission, ensuring the integrity and effectiveness of the exercise. These funds will allow us to continue delivering value to our stakeholders and contribute to the economy’s growth and development.”

The capital raised through this Hybrid Offer will be strategically utilized to fortify Zenith Bank’s position as a leading financial institution in Nigeria. Additionally, the funds will facilitate the Bank’s expansion into other markets in Africa and Europe, investments in technology, and other growth initiatives across the Group. This Offer, conducted from August 1, 2024, to September 23, 2024, aimed to raise N290 billion through a combination of a Rights Issue and Offer for Subscription, and was predominantly executed digitally through the Nigerian Exchange Limited’s e-Offer platform.

The remarkable results of this Hybrid Offer, attracting significant interest from both domestic and international investors, have positioned Zenith Bank as one of the few banks in Nigeria to exceed the CBN’s minimum capital requirements of N500 billion for Banks with International Authorization, well before the March 2026 regulatory deadline. The Bank’s share capital will now rise to N614.65 billion, surpassing the regulatory minimum requirement by N114.65 billion.