Zenith Bank
Plc has raised a total of N350.4 billion through its recently concluded hybrid
Rights Issue and Public Offer.
In a
statement released to the Nigerian Exchange (NGX) Group recently, the Bank announced that it s secured the full
regulatory approval of the Central Bank of Nigeria (CBN) and the Securities and
Exchange Commission (SEC) in respect of its recently concluded Hybrid Offer,
comprising of a Rights Issue of 5,232,748,964 Ordinary Shares of 50k each at
N36.00 per share and Public Offer of 2,767,251,036 Ordinary Shares of 50k each
at N36.50 per share.
The Public
Offer was 160.47% subscribed, with a total of 4,440,587,250 Ordinary Shares
allotted based on the terms of the Offer and the CBN’s Capital Verification
Exercise. The Rights Issue was also 100.18% subscribed with a total
5,232,748,964 ordinary shares allotted.
Lauding the
development, the Group Managing Director/Chief Executive of Zenith Bank Plc,
Dame (Dr.) Adaora Umeoji, (OON), said: “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 Central Bank of
Nigeria and the Securities and Exchange Commission, 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.”
Proceeds from
the Hybrid Offer will be strategically deployed to solidify the Bank’s position
as the leading financial institution in Nigeria. Additionally, the funds will
support the Bank’s expansion into other markets in Africa and Europe,
investment in technology and other Group-wide growth initiatives.
The Offer,
which opened on August 1, 2024 and closed on September 23, 2024 and sought to
raise N290 billion through a combination of a Rights Issue and Offer for
Subscription, was successfully executed largely as a digital Offer, embracing
the power of technology to improve access to the equity capital market as it
seamlessly leveraged the Nigerian Exchange Limited’s e-Offer platform.
The results
of the Hybrid Offer, which garnered substantial interest from domestic and
international investors, has positioned the Bank as one of the few banks in
Nigeria to meet and even surpass the CBN’s N500 billion minimum capital
requirements for Banks with International Authorization well ahead of the March
2026 regulatory deadline. The Bank’s share capital will now rise to N614.65
billion, which is N114.65 billion above the regulatory minimum requirement.
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