Table of Contents
Key Points:
- Zenith Bank is raising N290 billion ($182,389) to fuel its expansion across Africa and improve its digital infrastructure.
- The capital raise includes shares for both existing shareholders and new public investors.
- Funds will support growth in the retail and SME sectors, boosting economic development.
Zenith Bank Plc, a leading financial services group led by Nigeria’s richest banker Jim Ovia is issuing 8 billion new shares to raise N290 billion ($182,389). The bank is offering 5.23 billion shares at N36 each to existing shareholders.
These shares are available through a rights issue, where shareholders can buy one new share for every six they currently hold. Additionally, 2.77 billion shares are available to the public at N36.50 each.
“We are offering 65 percent of the shares to our existing shareholders and 35 percent to the public,” said Group Managing Director and CEO Adaora Umeoji.
This allocation ensures that existing shareholders’ stakes remain largely undiluted while opening up opportunities for new investors.
Allocation of funds
Zenith Bank plans to use 35 percent of the raised funds to expand its presence in Africa. The bank is particularly focused on launching operations in Paris, strengthening its influence in the African Francophone region, including Côte d’Ivoire and Cameroon.
An additional 20 percent of the funds will go towards upgrading the bank’s IT infrastructure. This investment will enhance Zenith Bank’s digital capabilities, helping it stay competitive in a rapidly evolving financial landscape.
The remaining 45 percent will be used as working capital. This will support the real sector of the economy, with a focus on retail and small-to-medium enterprises (SMEs). By targeting these key areas, Zenith Bank aims to increase economic growth both in Nigeria and internationally.
Market endorsements and corporate governance
Temi Popoola, CEO of Nigeria Exchange Group, highlighted the importance of this capital raise. He noted that it aligns with Zenith Bank’s vision to expand its market presence and deliver superior value to shareholders.
Jude Chiemeka, CEO of Nigeria Exchange Limited, also praised Zenith Bank’s corporate governance. He pointed out that the bank’s listing on the premium board reflects its high standards and appeal to international investors.
“We are confident that this recapitalization will lead to exponential growth for the bank,” Umeoji added. “Shareholders can expect greater value for their investments.”
Zenith Bank soars under Jim Ovia’s leadership
Zenith, a leading Nigerian financial services provider licensed by the Central Bank of Nigeria, boasts a large footprint across Nigeria and Anglophone West Africa. Founded in 1990 by Ovia, the bank has played a key role in the evolution and digitalization of the Nigerian banking sector. Ovia retains a 16.2-percent stake (5,072,104,311 ordinary shares).
Under Ovia’s leadership, total comprehensive income surged 737.07 percent, from N62.62 billion ($45.31 million) to N524.15 billion ($379.27 million). This follows a robust 2023 performance where total comprehensive income rose from N196.65 billion ($152.65 million) to N1.05 trillion ($815.06 million).
