Zenith Bank Raises ₦350.46 Billion in Landmark Hybrid Offer
In a bold move to strengthen its financial position and expand its global footprint, Zenith Bank has successfully raised a staggering N350.46 billion through a hybrid rights issue and public offer. The landmark achievement not only positions the bank as one of Nigeria’s most resilient financial institutions but also ensures it meets the Central Bank of Nigeria’s (CBN) stringent capital requirements well ahead of the March 2026 deadline.
The announcement, made by Zenith Bank’s Company Secretary, Michael Otu, in a statement published on the Nigerian Exchange Group (NGX) on Monday, revealed that the bank secured full regulatory approval from both the CBN and the Securities and Exchange Commission (SEC) for the hybrid offer. The offer comprised a rights issue of 5.23 billion ordinary shares at N36 per share and a public offer of 2.77 billion ordinary shares at N36.5 per share.
The response from investors was overwhelming. The public offer was oversubscribed by an impressive 160.47%, with 4.44 billion shares allotted, while the rights issue achieved a 100.18% subscription rate, resulting in the full allotment of 5.23 billion shares. This robust investor confidence, both domestically and internationally, underscores Zenith Bank’s reputation as a market leader and a preferred choice for equity investment.
With the successful completion of the hybrid offer, Zenith Bank’s share capital has now soared to N614.65 billion, surpassing the CBN’s N500 billion minimum capital requirement for banks with international authorization by a significant N114.65 billion. This milestone cements the bank’s position as one of the few Nigerian banks to achieve this feat ahead of the regulatory deadline.
Zenith Bank’s hybrid offer was not just a financial success but also a technological triumph. Leveraging the Nigerian Exchange Limited’s e-Offer platform, the bank embraced a fully digital approach to the share issuance process. This innovative strategy improved accessibility for investors and streamlined the subscription process, setting a new benchmark for equity capital market transactions in Nigeria.
According to Otu, the proceeds from the hybrid offer will be strategically deployed to reinforce Zenith Bank’s market leadership, drive expansion across Africa and Europe, and invest in cutting-edge technology and other growth initiatives. These plans align with the bank’s vision to remain at the forefront of Nigeria’s banking sector while exploring new opportunities in international markets.
The CBN’s revised capital requirements, announced on March 28, 2024, mandated that commercial banks with international licenses raise their minimum capital base to N500 billion. Zenith Bank’s proactive response to this directive, including its April 2024 announcement of plans to raise funds through share issuance, has now culminated in this resounding success.
The overwhelming subscription rates for both the rights issue and public offer reflect the trust and confidence investors have in Zenith Bank’s financial stability and growth prospects. As the bank continues to innovate and expand, it remains a beacon of excellence in Nigeria’s banking industry, setting the pace for others to follow.
