Zenith Bank’s expansion on track as N350bn hybrid offer gains regulatory approval
Onome Amuge
Zenith Bank Plc has successfully raised N350.4 billion through a recently concluded hybrid Rights Issue and Public Offer, marking an advancement in the bank’s journey towards growth and expansion.
The Tier-1 financial institution, in a statement released to the Nigerian Exchange (NGX) Group, confirmed that it has obtained full regulatory approval from both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for its recently concluded hybrid offer.
The hybrid offer comprised of a rights issue involving the issuance of 5,232,748,964 ordinary shares of 50 kobo each at N36.00 per share and a public offer involving the issuance of 2,767,251,036 ordinary shares of 50 kobo each at N36.50 per share.
According to Zenith Bank Plc, the public offer was heavily oversubscribed, with 4,440,587,250 ordinary shares allotted based on the terms of the offer and the CBN’s capital verification exercise, representing a subscription level of 160.47 percent.
The rights issue, on the other hand, recorded a subscription rate of 100.18 percent, with 5,232,748,964 ordinary shares allotted.
Zenith Bank also stated that its recently completed hybrid offer, which consisted of a rights issue and a public offer for subscription, was successfully leveraged on the power of technology to improve investors’ access to the equity capital market, raising a total of N290 billion through a largely digital Offer.
The offer, which opened on August 1, 2024 and closed on September 23, 2024, embraced digital platforms such as the Nigerian Exchange Limited’s e-Offer platform, enabling investors to seamlessly participate in the offer through electronic means and facilitating greater inclusivity in the Nigerian capital market.
Thus, the results of the hybrid offer, which garnered substantial interest from domestic and international investors, has positioned the bank as one of the few banks in Nigeria to meet and even surpass the CBN’s N500 billion minimum capital requirements for banks
with international authorisation well ahead of the March 2026 regulatory deadline.
Following the development, the bank’s share capital currently stands at N614.65 billion, which is N114.65 billion above the regulatory minimum requirement.
Commenting on the development, Adaora Umeoji, the group managing director/chief executive of Zenith Bank Plc,remarked that the success of the combined rights issue and public offering is a testament to the strong confidence and trust that the shareholders, investors, and stakeholders have in Zenith Bank’s vision, strategy, and brand.
“This landmark transaction underscores our commitment to strengthening our capital base, enhancing our competitive edge, and positioning ourselves for sustainable growth and profitability. We deeply acknowledge the invaluable and strong support of our regulators, the Central Bank of Nigeria and the Securities and Exchange Commission, and are grateful for their guidance in ensuring the integrity and efficacy of the exercise.
“This successful transaction will enable us to continue delivering value to our stakeholders, while also contributing to the growth and development of the economy,” the Zenith Bank CEO stated.
According to the Zenith Bank management, proceeds from the hybrid offer will be strategically deployed to solidify the bank’s position as the leading financial institution in Nigeria.
In addition, the funds will support the bank’s expansion into other markets in Africa and Europe, investment in technology and other group-wide growth initiatives, the bank noted.