Zenith Bank Plc on Sunday reported that its recently concluded hybrid offer was a huge success, garnering N350bn, for which it has secured full regulatory approval of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
Recall that the bank had last year, in line with the directive of the CBN that all banks in the country should embark on fresh capital raising and position for the $1tr economy envisioned by President Bola Tinubu, which opened on August 1, 2024 and closed on September 23, 2024 sought to raise N290bn by way of an offer of 5,232,748,964 Ordinary Shares of 50k each at N36.00 per share by way of rights to existing shareholders, and Public Offer of 2,767,251,036 Ordinary Shares of 50k each at N36.50 per share.
In what is perceived as strong investor confidence, Zenith Bank reported that the Public Offer was 160.47% subscribed, with investors pitching for a total of 4,440,587,250 Ordinary Shares, which were allotted based on the terms of the Offer and the CBN’s Capital Verification Exercise; while the Rights Issue was 100.18% subscribed with a total 5,232,748,964 ordinary shares allotted.
Reacting to the development, Group Managing Director/Chief Executive of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, described the success of the combined offering as “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,” she said, acknowledging the invaluable and strong support and guidance of the CBN and SEC in ensuring the integrity and efficacy of the exercise.
The successful transaction, she believes, will enable the bank “continue delivering value to our stakeholders, while also contributing to the growth and development of the economy.”
Proceeds from the Hybrid Offer, the statement added, will be strategically deployed to solidify the bank’s position as the leading financial institution in Nigeria, apart from supporting its expansion into other markets in Africa and Europe, investment in technology and other Group-wide growth initiatives.
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 N500bn 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 N614.65bn, which is N114.65 billion above the regulatory minimum requirement.