Zenith Bank Plc disclosed that it exceeded its target of N290 billion by raising N350.4 billion through its combined rights issue and public offer.
The bank said in a statement issued to the Nigerian Exchange Group on Sunday that the Central Bank of Nigeria and the Securities and Exchange Commission have also given their regulatory permission.
The combined offer from Zenith Bank comprised a public offering of 2,767,251,036 Ordinary Shares of 50k each at N36.50 per share and a rights issue of 5,232,748,964 Ordinary Shares of 50k each at N36.00 per share. The offer went live on August 1, 2024, and ended on September 23, 2024.
There was an oversubscription for both programs. The rights issue was likewise 100.18 percent subscribed, with a total of 5,232,748,964 ordinary shares granted. In comparison, the public offer was 160.47 percent subscribed, with a total of 4,440,587,250 ordinary shares allotted based on the conditions of the offer and the CBN’s Capital Verification Exercise.
With this outcome, Zenith Bank has surpassed the CBN’s N500 billion minimum capital requirements for banks with international authorization, making it one of the few banks in Nigeria to do so far before the statutory deadline in March 2026. The bank will now have N614.65 billion in share capital, N114.65 billion more than the minimal amount required by law.
“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,” said Dr. Adaora Umeoji, Group Managing Director/Chief Executive of Zenith Bank Plc, in response to the development.
“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.”
The bank stated that the money raised from the hybrid offer will strengthen its “position as the leading financial institution in Nigeria.” The money will also go towards technological investments, other Group-wide growth projects, and the Bank’s expansion into more African and European markets.
Additionally, the offer was performed successfully primarily as a digital offer, utilizing the Nigerian Exchange Limited’s e-Offer platform, NGX Invest, to seamlessly use technology and enhance access to the equity capital market.
The CBN instructed national and commercial banks with international authorization to raise their capital bases to N200 billion and N500 billion in March 2024. Regionally authorized banks are anticipated to reach a capital floor of N50 billion.
Likewise, national and regionally authorized non-interest banks will have to raise their capital to N20 billion and N10 billion, respectively.
