Zenith Bank Plc, Nigeria’s largest lender by market capitalization, has announced plans to raise ₦290 billion ($182 million) to fund its expansion strategies and enhance its loan portfolio. The bank officially launched its combined offer on Monday at the Nigeria Exchange Limited (NGX).
The fundraising initiative includes an offer of 5.2 billion shares at ₦36.00 per share to existing shareholders and 2.7 billion shares at ₦36.50 to the general public. The offer, which commenced on August 1, is set to close on September 9, 2024.
Since going public in 2004, Zenith Bank has built a reputation for maximizing shareholder value, with a current market capitalization of ₦1.9 trillion.
“We paid a dividend of ₦4 per share—the highest paid by any bank in Nigeria. This trend has continued for the last five years, achieved solely through organic profits without FX revaluation gains. Zenith Bank’s offer represents an exceptional opportunity for investors,” stated Adaora Umeoji, Group MD/CEO of Zenith Bank, during her presentation.
Zenith Bank has grown from a mid-sized lender to the largest tier-1 bank by market value. The corporate banking division contributes 58% of the group’s revenue, while the retail segment accounts for 42%.
“Our subsidiaries are generating nearly 20% in profits and are integral to the group’s overall profitability,” Umeoji added.
The funds raised will be allocated as follows: 35% (₦99 billion) will be used for the strategic expansion of the bank’s operations, including plans to broaden its presence in West Africa and establish a branch in Paris, aimed at consolidating its Francophone market reach.
With a customer base of 33 million, Zenith Bank will focus on the retail and SME segments, dedicating 45% (₦128 billion) of the raised capital to working capital for these areas. The remaining 20% (₦57 billion) will be invested in IT infrastructure to enhance operational efficiency.
Credit: Techcabal (Text Excluding Headline)
