Zenith Bank Plc, a Nigerian lender, plans to issue 31.3 billion new shares in an effort, aimed at raising additional capital.
In a filing made on Friday with the Nigerian Exchange Group (NGX), the precise amount was not disclosed.
This action is a reaction to the Central Bank of Nigeria’s (CBN) recent announcement that minimum capital requirements for banks will increase tenfold. This kind of adjustment hasn’t been made in almost 20 years.
The bank proposes amending its articles of association to reflect the new share capital of N31.3 billion. This would bring the total issued shares to 62.7 billion, with each share valued at 50 kobo.
“Clause 6 of the Company’s Memorandum of Association and Clause 9 of the Company’s Articles of Association are hereby amended to reflect the new share capital of N31.3 billion by the creation of the addition of up to 31.3 billion ordinary shares of NO.50 Kobo each ranking pari-passu with the existing ordinary shares of the company bringing the total issued shares of the Company to 62.7 billion, ordinary shares of NO.50 Kobo each,” the bank said.
The plan was detailed in a notice ahead of its third Annual General Meeting to be held on May 8.
