Breaking News: Following the recent Central Bank of Nigeria’s (CBN) requirement to Nigerian banks to raise their minimum capital base to N500 billion, Zenith bank Plc, is jostling to meet the new CBN requirement; 9AM News Nigeria can report.
To raise capital, the bank is doing a double or hybrid offer by means of an Initial Public Offering (IPO) and a Rights Issue (RI) to interested investors, with a possible dividend of up to 32% for both new and existing investors (shareholders).
The aim of Zenith bank recent campaign is to raise the sum of at least N290 billion to add to its existing capital help it meet the N500 billion capital base requirement by the Central Bank of Nigeria.
Information obtained by 9AM News Nigeria reveal that within only a few days of this offer the bank has already raised N15.7 billion naira and is hoping to raise an additional N274 billion naira to meet its target. This exercise has been necessitated by the new CBN rule which has compelled most banks to go jostling and scampering for new investors to inject money into their system and meet the new requirements for the expiration of the CBN’s deadline.
Details of Zenith bank’s hybrid offer.
Director and CEO of Zenith bank, Dr. Adaora Umeoji giving detailed explainations of the offer said the hybrid offer includes a Rights Issue of 5,233 shares at the cost of N36 per share for its current shareholder who wish to top up their shares and 2,767 shares at the cost of N36.5 per share for all new investors.
The campaign launched on August 1, 2024, and is set to end on September 9, 2024. The new shares are offered at an astoundingly low cost, with great prospects for appreciation, given Zenith Bank’s stellar performance in the corporate sector.
Zenith Bank
This is a mouthwatering offer for prospective investors. Zenith bank has demonstrated a steady growth, uncommon resilience, robost operational capabilities, managerial competence and a solid track record.
The bank’s shares price has risen by 57% within the past few years driven by a high demand making it one of the most capital rich bank in the Nigerian banking sector with a market capital of N1.13 trillion.
The bank achieved recognition as the most profitable bank on the Nigerian Stock Exchange in 2023 by registering a pre-tax profit of N795.94 billion. Also remarkably it recorded in Q1 2024 a pre-tax profit of 40% of its entire pre-tax profit of 2023, a glaring indication of its high profitability.
In 2023, its loans and advances profile show an increase of 63% to a total N6.6 trillion disbursed so far.
9AM News Nigeria further learnt that in 2023 its shareholders enjoyed earnings of N21.55 per share held which is about 60% profit per share, making it easily the best and most profitable among its competitors. This is a significant creation of value.
Total Earnings
Zenith bank’s total earnings hit an unprecedented N2.13 trillion in 2023 from N946 billion in 2022.
Furthermore, its performance in 2024 clearly shows that the bank is set to surpass its 2023 records.. This has triggered a scampering for its stock at the Nigerian stock exchange with investors seeing only an upward trajectory in the bank’s fortunes.
The Investment mogul Dr. Jim Ovia founded Zenith Bank in 1990, and it became a Public Limited Company in July 2004.. In 2013 the bank offered $850 million worth of shares at $6.8 at the London Stock Exchange.
It is now one of the leading financial institution in the African continent. It has bagged a plethora of awards and has achieved an enviable feat of being named the Number One bank in Nigeria for fifteen consecutive years.
Ogasabi encourages people yearning to sow their money profitably to give a thought to investing with the high-flying Zenith bank Plc.
