Zenith Bank N290bn Capital Raise Targets Expansion, Greater Value For Investors – Group MD, Umeoji

L-R: Louis Odom, Executive Director, Zenith Bank Plc (left); Adamu Lawani, Executive Director (second left); Femi Shobanjo, Chief Executive Officer, NGX Regulation (NGX RegCo) (third left); Jude Chiemeka, Chief Executive Officer, Nigerian Exchange Limited (NGX) (fourth left); Temi Popoola, Group Managing Director/CEO, NGX Group (fifth left); Dame Adaora Umeoji, OON, Group Managing Director/Chief Executive, Zenith Bank Plc (fifth right); Ahonsi Unuigbe, Chairman, NGX Group (fourth right); Henry Oroh, Executive Director (third right); Adobi Nwapa, Executive Director (second right), and Akin Ogunranti, Executive Director, during Zenith Bank’s facts behind the offer at the Nigerian Exchange Limited (NGX) in Lagos, on Monday.L-R: Louis Odom, Executive Director, Zenith Bank Plc (left); Adamu Lawani, Executive Director (second left); Femi Shobanjo, Chief Executive Officer, NGX Regulation (NGX RegCo) (third left); Jude Chiemeka, Chief Executive Officer, Nigerian Exchange Limited (NGX) (fourth left); Temi Popoola, Group Managing Director/CEO, NGX Group (fifth left); Dame Adaora Umeoji, OON, Group Managing Director/Chief Executive, Zenith Bank Plc (fifth right); Ahonsi Unuigbe, Chairman, NGX Group (fourth right); Henry Oroh, Executive Director (third right); Adobi Nwapa, Executive Director (second right), and Akin Ogunranti, Executive Director, during Zenith Bank’s facts behind the offer at the Nigerian Exchange Limited (NGX) in Lagos, on Monday.

Zenith Bank Plc a foremost financial institution in Nigeria has announced plans to raise N290 billion in capital to support its strategic expansion, infrastructure development, and financing for the real sector, with emphasis on retail and SME sub-sector.

The bank is issuing a combined offer of eight billion shares, comprising a Rights Issue and Public Offer.

Information from the lender says the rights issue offers 5.23 billion units of shares at N36.00 per share to existing shareholders, whereas the public offer presents 2.77 billion ordinary shares at N36.50 per share. The offer opened on August 1, 2024, and will close on September 9, 2024.

Speaking at the Bank’s ‘facts behind the offer’ at the Nigerian Exchange, NGX on Monday, the Group Managing Director of Zenith Bank Plc, Dr Adaora Umeoji, said the
rights issue and public offer will provide more funds to drive the Bank’s global expansion.
According to her Zenith Bank’s expansion strategy, which includes launching operations in Paris to serve the African Francophone market, as well as bolstering its presence across Africa and other regions, is set to drive significant growth.
She said the offer was structured to prioritize the interests of existing shareholders while supporting the bank’s ambitious expansion plans.

She reassured shareholders that the bank’s expansion plans will translate into greater value for their investments. She highlighted the strategic allocation of the funds thus, 35 per cent to go towards expanding the bank’s footprint, 20 per cent will enhance IT infrastructure, and 45 per cent will be used as working capital, particularly in supporting the retail and SME sectors.

“We are offering approximately 5.23 billion units of shares at N36 per share exclusively to our existing shareholders through a rights issue, allowing them to maintain their equity and benefit from the bank’s future growth.
“The allocation of 65% of the newly issued shares to current shareholders underscores the bank’s strategic intent to avoid diluting their stakes as it raises capital to fund expansion and operational enhancements”, Umeoji said.

Further she highlighted the bank’s track record of efficient capital utilization and its commitment to solidifying its presence in key global financial hubs.
Umeoji emphasized the bank’s strong brand loyalty position and its achievement of Tier-1 capital of N1.9 trillion, the highest in the Nigerian banking industry.

She also noted the bank’s consistent dividend payout trend, with a dividend of N4.00 per share, making it the highest dividend-paying bank in Nigeria.

The Chairman of Nigerian Exchange, Ahonsi Unuigbe, commended Zenith Bank’s consistent demonstration of relevance in the financial services landscape and its positioning for sustainable long-term growth.

Also Temi Popoola, Group CEO of Nigeria Exchange , and Jude Chiemeka, CEO of Nigeria Exchange Limited, both commending Zenith Bank’s strong corporate governance and strategic vision. Their endorsements further affirm the bank’s position as a leader in delivering shareholder value in the Nigerian banking sector.