.It remains leader in financial sector, says Okezie
COMFORT EKELEME,
Business Editor
Financial experts have attributed the over subscription of Zenith Bank’s recent Public Offer to strong confidence of both local and international investors in the financial institution.
A Shareholder activist, Mr. Moses Igbrude in an interview with Daily Champion said that the over subscription shows that the bank and its management have done well.
He said, “I am very happy for them and I am using this opportunity to congratulate them and encourage them to do more; as much is given, much is expected of them.
Also, President, Pragmatic Shareholders Association, Mrs. Bisi Bakare said I feel elated about the news of the oversubscription of Zenith Bank hybrid share offer.
She said, “It’s a testament of investors confidence in the bank and an expectation of improve returns on investment.
“As shareholders, I feel that the bank remains as one of the strongest bank in Nigeria in terms of asset quality, major pillar for both domestic and international business and very consistent in dividend payout to shareholders over the years.
“So it is a thing of joy that am proud to associate with the bank that is not only strong but very reliable,” she said.
President, Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie maintained that the over subscription recorded by Zenith Bank is a testament that the bank remains the financial leader within the Industry.
I knew it will be like that because when the right opened, the price was right and its public offer price was also good to attract investors’ interest.
He said, “Zenith Bank Plc cannot come last and shareholders are happy for it and looking forward to its high dividends that will accrued to it.
Zenith Bank recently announced that its Public Offer was 160.47per cent subscribed, with a total of 4,440,587,250 ordinary shares allotted based on the terms of the offer and the Central Bank of Nigeria (CBN’s) Capital Verification Exercise.
The Rights Issue was also 100.18per cent subscribed with a total 5,232,748,964 ordinary shares allotted.
Group Managing Director/Chief Executive Officer of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, while lauding the development said, “The success of our combined Rights Issue and Public Offering is a testament to the strong confidence and trust that our 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 CBN and the SEC, 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,” she said.
According to her proceeds from the Hybrid Offer will be strategically deployed to solidify the Bank’s position as the leading financial institution in Nigeria.
“Additionally, 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 Offer, which opened on August 1, 2024 and closed on September 23, 2024 and sought to raise N290 billion through a combination of a Rights Issue and Offer for Subscription, was successfully executed largely as a digital Offer, embracing the power of technology to improve access to the equity capital market as it seamlessly leveraged the Nigerian Exchange Limited’s e-Offer platform.
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 Authorization well ahead of the March 2026 regulatory deadline.
The Bank’s share capital will now rise to N614.65 billion, which is N114.65 billion above the regulatory minimum requirement.
In a statement released to the Nigerian Exchange (NGX) Group, the Bank also announced that it has secured the full regulatory approval of the CBN and the Securities and Exchange Commission (SEC) in respect of its recently concluded Hybrid Offer, comprising of a Rights Issue of 5,232,748,964 Ordinary Shares of 50k each at N36.00 per share and Public Offer of 2,767,251,036 Ordinary Shares of 50k each at N36.50 per share.
