The Group Managing Director/Chief Executive Officer of Zenith Bank Plc, Adaora Umeoji, has announced that the bank has started the process of raising N290 billion fresh capital through rights issues and public offer, to bolster its offshore expansion efforts.
Speaking at the “facts behind the combined offer by Zenith Bank Plc” on the floor of the Nigerian Exchange on Monday in Lagos, Umeoji said that the bank was issuing 5.23 billion shares at N36 each to existing shareholders and 2.77 billion shares at N36.50 each to the public.
“We are offering approximately 5.23 billion units of shares of 50 kobo each at N36 per share to our existing shareholders through a rights issue of one new share for every six held. We are also offering 2.77 billion ordinary shares of 50 kobo each at N36.50 per share to the public through a public offer,” she said.
She explained that 65 per cent of the shares would be allocated to existing shareholders through the rights issue, while 35 per cent would be available to the public through the public offer.
“We are very conscious of not diluting our existing shareholding structure, which is why we are offering 65 per cent to our existing shareholders and 35 per cent to the public,” she added.
According to her, a significant portion of the funds will be allocated to expanding its footprint in Africa and other regions, enhancing IT infrastructure, and supporting the real sector, with a strategic focus on launching operations in Paris to strengthen its presence in the African Francophone market.
“We currently have subsidiaries and representative offices in Ghana, Sierra Leone, Gambia, UK, UAE, and China, and we recently obtained a banking license to commence operations in Paris,” she added.
Zenith Bank Plc, which is regarded as a powerhouse in the Nigerian banking industry, has been consistently delivering exceptional financial performance.
The bank recorded a robust growth trajectory in 2023 business year with an earnings per share of N21.55, translating to an impressive earnings yield of around 60%. This positions Zenith Bank as an unparalleled value investment in the Nigerian financial sector, offering not just industry-leading dividends but significant long-term value creation for investors.
The Bank also achieved remarkable milestones in 2023, leading the banking sector with a pre-tax profit of N796 billion and a profit after tax of N677 billion. ($1=N1569)
GIK/APA