Zenith Bank Plc has unveiled plans to raise N289 billion capital for its strategic expansion, IT infrastructure and support for the real sector with a focus on the retail and SME segments.
Speaking at the NGX on Monday during the 'Facts Behind the Offer' presentation, the Group Managing Director/Chief Executive, Dr Adaora Umeoji, said the bank is issuing a combined offer of eight billion shares.
According to her, Zenith Bank plc is offering approximately 5.23 billion units of shares of 50 kobo each at N36.00 per share to the existing shareholders through a Rights Issue of 1 share for every 6 held.
Umeoji also explained that the bank is offering 2.77 billion ordinary shares of 50 kobo each at N36.50 per share to the public through a 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, making it a total of eight billion shares we are issuing in the offer.
"We are very confident that after the ongoing recapitalisation process, the bank will experience exponential growth and shareholders will get better returns for their investment," she said.
Explaining how the proceeds will be utilised, the GMD said "Zenith Bank has a track of efficient capital utilisation. 35 per cent of the proceeds is going to be used for the strategic expansion, increasing our footprints in Africa and other parts of the world, while 20 per cent will be used to enhance our IT infrastructure and digital capabilities.
"The remaining 45 per cent is going to be used for the working capital, to support the real sector of the common economy with the focus on SMEs and retail segments of the business."
Speaking on the need to invest in Zenith Bank, Umeoji said the bank remains the most profitable in Nigeria, highest dividend paying with the corporate governance structure.
"You will therefore agree with me that Zenith Bank's offer is truly investors' delight," she said.
Earlier, the Chairman, NGX Limited, Ahonsi Unuigbe, applauded the "remarkable growth trajectory of the bank as a top performer in the industry."
He described the relationship between NGX and Zenith Bank as long-standing and mutually beneficial with the commitment to drive economic growth and shared goals and value to investors.
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"We remain steadfast at the NGX in our commitment to protecting the interest of our investors through rigorous oversight, adherence to best practices and continuous engagement with market participants.
"We strive to maintain that this market remains a fair, transparent one that is conducive to investments. We believe that by safeguarding the investors' confidence we can ensure the sustained growth and stability of our markets," he said.
The Group CEO of NGX, Temi Popoola, noted that the Zenith Bank has leant its support to the technology and digitalisation drive at the capital market.
