Zenith Bank to raise ₦290bn through rights issue, public offer

Zenith Bank, one of Nigeria's leading financial institutions, has announced plans to raise about 290 billion naira in fresh capital through a combination of a rights issue and a public offer. This capital raise exceeds the 230 billion naira required to meet the Central Bank of Nigeria's recapitalization requirement. The Group Managing Director and Chief Executive Officer of Zenith Bank, Adaora Umeoji, discussed the details of the offering with CNBC Africa's Akin Obakeye. The rights issue and public offer are set to run from August 1st to September 9th, 2024. Umeoji highlighted that existing shareholders and the general public will have the opportunity to participate in the capital raise, emphasizing the desire for all stakeholders to be part of Zenith Bank's success story. For the rights issue, shareholders must be registered by July 24, 2024, and the offering will be at 36 naira per share. The public offer, on the other hand, will be priced at 36 naira 50 kobo per share. In a competitive financial market, Umeoji stressed that Zenith Bank's strong reputation and track record of value creation set it apart. She pointed out that Zenith Bank was the highest dividend-paying bank in Nigeria in 2023, demonstrating the bank's commitment to providing attractive returns to investors. This commitment to value creation positions Zenith Bank as an attractive investment opportunity for both existing and new shareholders. Looking ahead, Umeoji discussed Zenith Bank's strategic plans post-capital raise. The bank intends to expand its presence globally, with a focus on establishing a footprint in francophone African countries and eventually expanding beyond the continent to become a truly global brand. Additionally, Zenith Bank plans to invest in cutting-edge technology to drive financial inclusion and enhance its digital banking capabilities. These investments will not only strengthen the bank's operations but also support its strategic growth initiatives, ultimately aiming to dominate the markets in which it operates. Overall, Zenith Bank's ambitious capital raise and strategic plans for future growth underline its commitment to innovation, value creation, and expansion. By inviting both existing shareholders and the general public to participate in the offering, the bank is fostering a sense of inclusivity and shared success among its stakeholders. With a clear vision for global expansion and a focus on leveraging technology for financial inclusion, Zenith Bank is poised to strengthen its position as a leading player in the Nigerian and African banking sectors.