Zenith Bank Reassures Shareholders of Unchanged Shareholding Amidst Combined Offering
Lagos, Nigeria – Zenith Bank Plc has allayed the fears of its shareholders, reiterating that its existing shareholding will remain unchanged during the ongoing combined offering. The bank’s Group Managing Director, Adaora Umeoji, made this assurance at the “Fact Behind the Combined Offer” event held at the Nigerian Exchange Ltd. (NGX) on Monday in Lagos.
According to Umeoji, the bank is offering 65% of its shares to existing shareholders and 35% to the public to avoid diluting current holdings. The combined offering, which launched on August 1, aims to raise a total capital of N289.4 billion and is set to close on September 9.
The breakdown of the shares offered shows that 5.23 billion units of shares of 50k each at N36 per share will be allocated to existing shareholders through a rights issue of one new share for every six held. Additionally, 2.77 billion ordinary shares of 50k each at N36.50 per share will be offered to the public through a public offer, in line with the Central Bank of Nigeria (CBN) recapitalisation directive to Nigerian banks.
Umeoji emphasized that 35% of the proceeds from the combined offering will be used to fund the bank’s expansion strategy and increase its footprint in Africa and other parts of the world. Twenty percent of the fund will be utilized to enhance the bank’s Information Technology (IT) infrastructure and digital capabilities, while the balance of 45% will be deployed as working capital to support the real sector of the economy.
The bank’s chief executive highlighted the bank’s impressive financial performance, stating that it has emerged as the number one bank by Tier-one capital, shareholders’ funds, market capitalization, profit before tax, and dividend payout. As at the end of the 2023 financial year, the bank paid a dividend of four Naira per share, making it the highest dividend-paying bank in Nigeria.
The bank’s CEO also commended the bank’s corporate governance, which has contributed to the integrity of the market and attracted international investors. The bank’s listing on the NGX’s premium board signifies high corporate governance standards, reinforcing the bank’s reputation and fostering investor confidence.
In conclusion, Umeoji expressed confidence that after the ongoing recapitalization exercise, the bank will experience exponential growth, and shareholders will get greater value for their investment.
