Zenith Bank Plc, Nigeria’s largest lender by market capitalisation, has announced a $182 million capital raise to support its expansion strategy and boost its loan portfolio.
On Monday, the bank launched its combined offer on the Nigeria Exchange Limited (NGX).
Zenith Bank is offering 5.2 billion shares at $0.02 each to existing shareholders and an additional 2.7 billion shares at the same price to the general public.
The offer opened recently and will close on September 9, 2024.
Zenith Bank has grown significantly since its public listing 2004, boasting a market capitalisation of $1.195 billion.
The bank’s appeal lies in its robust track record of delivering shareholder value, underlined by a consistent dividend payment history, instilling confidence in its future performance.
“We paid a dividend of ₦4 per share, the highest of any bank in Nigeria. Over the last five years, organic profits have maintained and funded this trend solely without relying on foreign exchange revaluation gains.
Zenith Bank’s offer represents a compelling opportunity for investors,” said Adaora Umeoji, Group Managing Director/CEO of Zenith Bank.
By market value, Zenith Bank has evolved from a mid-size lender to the largest tier-1 bank, a testament to its promising future prospects.
The group’s corporate banking division generates 58% of its revenue, with the retail segment contributing 42%.
“All our subsidiaries are achieving nearly 20% profit margins and significantly contributing to group profits,” Umeoji added.
Of the total capital raised, $62 million (35%) will be allocated to strategic expansion efforts, including extending operations across West Africa and establishing a presence in Paris to strengthen its Francophone market reach.
Another $81.2 million (45%) will be directed towards working capital to support the retail and SME sectors. The remaining $35.851 million (20%) will be invested in upgrading IT infrastructure.
Zenith Bank, which serves 33 million customers, aims to leverage this capital raise to enhance its service capabilities and expand its regional and international market presence, demonstrating its strong market presence.
