Zenith Bank Plc is gearing up to bolster its capital by raising N188.37 billion through a rights issue of 5.23 billion shares, pending approval from the Nigerian Exchange (NGX) Limited.
Godstime Iwenekhai, head of the issuer regulation department at NGX, announced that the qualification date for this rights issue is July 24.
Zenith Bank, in collaboration with its stockbroker Stanbic IBTC Stockbrokers Limited, aims to list over 5.23 billion ordinary shares at 50 Kobo each, priced at N36.00 per share, on the basis of one new share for every six existing shares held as of July 24, 2024.
Back in April, Zenith Bank unveiled its strategy to raise funds in both the international and Nigerian capital markets through the issuance of ordinary or preference shares via private placement or rights issue.
Additionally, the bank plans to propose an increase in its issued share capital from N15,698,246,893.50 to N31,396,493,787 at its AGM.
This capital-raising initiative comes in response to a Central Bank of Nigeria (CBN) directive from March 28, mandating an increase in minimum capital requirements for commercial, merchant, and non-interest banks.
With the new capital base set at N500 billion for commercial banks with international licenses, Zenith Bank, currently holding a capital base of N270.75 billion, must raise an additional N229.25 billion to comply with these regulations.
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