Zenith Bank Plc has solidified its position as a powerhouse in Nigeria’s financial sector, announcing the successful conclusion of a monumental hybrid Rights Issue and Public Offer that raised N350.4 billion.
The Bank disclosed the outcome in a statement on Sunday, January 26, 2025, highlighting full regulatory approval from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
Record Subscriptions Reflect Investor Confidence
The fundraising exercise, which included a Rights Issue of 5.23 billion ordinary shares priced at N36.00 per share and a Public Offer of 2.77 billion shares at N36.50 each, exceeded all expectations. The Public Offer was oversubscribed by an impressive 160.47%, resulting in the allotment of 4.44 billion shares. Similarly, the Rights Issue was fully subscribed at 100.18%, demonstrating strong investor confidence.
Dame (Dr.) Adaora Umeoji, OON, the Group Managing Director/Chief Executive of Zenith Bank, lauded the milestone. “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,” she said.
Dr. Umeoji emphasized that the funds will reinforce the bank’s capital base, ensuring its competitive edge and sustainability. “This successful transaction will enable us to continue delivering value to our stakeholders while contributing to the growth and development of the economy,” she added.
Pioneering Digital Access to Capital Markets
The Offer, which ran from August 1 to September 23, 2024, set new benchmarks by leveraging the Nigerian Exchange Limited’s e-Offer platform, streamlining the process for both domestic and international investors. Analysts lauded the Bank’s use of digital tools to enhance accessibility, marking a significant shift in how equity capital is raised in Nigeria.
Strengthening Position in a Competitive Market
Proceeds from the hybrid offer will bolster Zenith Bank’s strategic objectives, including expansion into African and European markets, investments in advanced technology, and group-wide growth initiatives. Furthermore, the funds position the Bank as one of the few Nigerian financial institutions to surpass the CBN’s N500 billion minimum capital requirement for international authorization.
The Bank’s total share capital will now increase to N614.65 billion, well above the regulatory minimum, cementing its status as a leader in the sector. With the March 2026 deadline looming for banks to meet capital adequacy standards, Zenith Bank’s early compliance reflects robust financial health and strategic foresight.
Market Analysts Praise Strategic Move
Financial analysts have described Zenith Bank’s success as a watershed moment for Nigeria’s capital market. “This level of investor confidence underscores the strength of Zenith Bank’s brand and the attractiveness of its future growth trajectory,” said a Lagos-based financial expert.
Additionally, the hybrid offer’s ability to attract domestic and international investors is seen as a positive sign for Nigeria’s broader investment climate.
Commitment to National Growth
Zenith Bank reiterated its commitment to contributing to Nigeria’s economic progress, with proceeds set to drive initiatives that align with national priorities. “We are not just building a stronger financial institution but also playing a key role in economic development,” Dr. Umeoji said.
The Bank’s long-standing reputation for innovation and resilience has consistently placed it at the forefront of Nigeria’s financial sector. This recent capital-raising success further underscores its ability to navigate challenges while seizing growth opportunities.
