Zenith Bank’s N350bn Hybrid Offer Gets CBN, SEC Approvals

By Dipo Olowookere

The N350.4 billion sourced from the capital market through rights issue and public offer by Zenith Bank Plc have been approved by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

The hybrid offer comprised a rights issue of 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share and public offer of 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share.

The public offer was 160.47 per cent subscribed, with a total of 4,440,587,250 ordinary shares allotted based on the terms of the offer and the CBN’s Capital Verification Exercise. The rights issue was also 100.18 per cent subscribed with a total 5,232,748,964 ordinary shares allotted.

The exercise, which opened on August 1, 2024, and closed on September 23, 2024, was to raise N290 billion. It 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 NGX’s e-offer platform, NGX Invest.

The results of the hybrid offer, which garnered substantial interest from domestic and international investors, have 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.

Proceeds from the hybrid offer will be strategically deployed to solidify the financial institution’s position as the leading financial institution in Nigeria.

Additionally, the funds will support the lender’s expansion into other markets in Africa and Europe, investment in technology and other Group-wide growth initiatives.

In a statement released to the Nigerian Exchange (NGX) Limited on Sunday, January 26, 2025, the chief executive of Zenith Bank, Ms Adaora Umeoji, 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 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,” she stated.