AGS NEWS – Zenith Bank Plc plans to raise approximately N290bn in fresh capital, exceeding the N230bn required by the Central Bank of Nigeria for recapitalization.

The bank announced this at a rights issue and public offer signing ceremony in Lagos.

The capital raise will combine a rights issue and a public offer, with the rights issue offering 5,232,748,964 ordinary shares at N36.00 per share and the public offer presenting 2,767,251,036 ordinary shares at N36.50 per share to new investors.

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Existing shareholders can purchase additional shares at a ratio of one new share for every six held as of July 24, 2024. The public offer aims to attract new investors.

Zenith Bank’s Group Managing Director/CEO, Dr. Adaora Umeoji, expressed satisfaction with the support from existing shareholders and emphasized the importance of including a public offer to allow more customers to invest in the bank.

Umeoji highlighted Zenith Bank’s top ranking in tier-1 capital in Nigeria and its consistent high dividend payouts, with a record dividend of N4 per share in 2023.

The capital raised will fund expansion in Africa and internationally, technology investments, and working capital.

Stanbic IBTC Capital Limited, the lead issuing house, praised Zenith Bank’s management and the combined offer’s potential to spur more capital market transactions.

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The offer will open on August 1, 2024, and close on September 9, 2024.

The Central Bank of Nigeria recently directed Deposit Money Banks to recapitalize, with international banks needing a capital base of N500bn, national banks N200bn, and regional banks N50bn.

The recapitalization must be completed by March 31, 2026, using additional capital, mergers, acquisitions, or license changes.