Zenith Bank Plc has successfully raised N350.46 billion through a hybrid capital-raising offer, exceeding its initial target of N290 billion. This achievement follows approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), marking a significant step toward meeting the new CBN minimum capital requirement of N500 billion.
Breaking Down the Capital Raise
In July 2024, Zenith Bank unveiled its hybrid offer, combining a rights issue and a public offer to attract both existing and new investors. The offer details were as follows:
• Rights Issue: 5,232,748,964 ordinary shares at 50 kobo each, priced at N36.00 per share.
• Public Offer: 2,767,251,036 ordinary shares at 50 kobo each, priced at N36.50 per share.
Investor participation was exceptionally strong. The public offer was oversubscribed by 160.47%, leading to an increased allocation of 4,440,587,250 shares. The rights issue saw a 100.18% subscription rate, reflecting solid shareholder confidence.
Exceeding Capital Requirements
The successful fundraising effort has now boosted Zenith Bank’s total share capital to N614.65 billion, surpassing the CBN’s minimum capital threshold of N500 billion. The bank has outlined three key areas where these funds will be deployed:
- Expansion into new markets across Africa and Europe
- Investment in advanced banking technology and digital transformation
- Enhancement of market leadership and competitive positioning in Nigeria
Stock Market Performance and Investor Sentiment
Zenith Bank’s stock has maintained a strong buy trend, recording a 17.7% year-to-date (YTD) gain in 2024:
• January 2024: Opened at N38.65
• March 2024: Peaked at N44.50
• April 2024: Declined to N32.10 due to concerns over CBN’s recapitalization directive
• December 2024: Recovered to N45.50
• January 2025: Gained 8% month-to-date, maintaining an upward trajectory
A Bold Vision for the Future
Speaking at the Rights Issue/Public Offer Signing Ceremony on July 29, 2024, Dame (Dr.) Adaora Umeoji, OON, Group Managing Director/CEO of Zenith Bank, highlighted the significance of this milestone:
“We are thrilled by the overwhelming response from shareholders. Beyond raising capital, this offer allows new investors, including our loyal customers, to become part of the Zenith Bank success story.”
With a strengthened capital base and rising investor confidence, Zenith Bank is poised for sustained growth, regional expansion, and continued dominance in Nigeria’s banking sector.
