Zenith Bank Plc has successfully completed its ₦188 billion rights issue, raising fresh capital to strengthen its balance sheet and support future growth. The rights issue, which was fully subscribed at 100.18%, saw strong investor participation, underscoring confidence in the bank’s performance and long-term outlook.
The offer, priced at ₦36.00 per share, was structured as one new ordinary share for every six shares held, with a total of 5,232,748,964 new ordinary shares issued. The bank announced that shares would be credited to investors’ CSCS accounts by January 30, 2025, while refunds for unsuccessful applications would also be processed by the same date.
Key Details of the Rights Issue
- Total Shares Issued: 5,232,748,964 Ordinary Shares
- Issue Price: ₦36.00 per share
- Allotment Ratio: 1 new share for every 6 shares held
- Record Date: July 24, 2024
- Subscription Period: July 29, 2024 – Closing date undisclosed
- Subscription Level: 100.18% subscribed
The rights issue was facilitated by a syndicate of leading investment banks, with Stanbic IBTC Capital Limited as the lead issuing house, alongside Quantum Zenith Capital, CardinalStone Partners, Chapel Hill Denham, Coronation Merchant Bank, Meristem Capital, and Vetiva Advisory as joint issuing houses.
Results of the Rights Issue
The issue attracted 40,578 applications, with total requests for 5,253,488,246 shares. After validation, 39,758 applications were deemed valid, covering 5,242,097,792 shares.
- Fully Accepted Rights: 2,024,277,215 shares
- Additional Share Applications: 1,880,998,753 shares
- Rights Traded on the NGX: 1,034,192,921 shares
- Partially Accepted Rights: 302,628,903 shares
- Renounced Shares: 1,428,195,561 shares
The highest single application was for 592,158,232 shares, reflecting significant institutional investor interest. Additionally, many investors applied beyond their entitlement, leading to oversubscription of the available shares.
Rejected Applications & Renounced Shares
Despite the strong investor demand, 820 applications were rejected, totaling 11,390,454 shares. The reasons for rejection included:
- Multiple subscriptions: 2 applications (12,528 shares)
- Non-qualified shareholders: 3 applications (18,000 shares)
- Non-cleared applications by the CBN: 811 applications (9,418,080 shares)
- Rights already traded before application: 4 applications (1,941,846 shares)
In addition, 1,428,195,561 shares were renounced, meaning some existing shareholders opted not to participate in the offer, allowing other investors to acquire additional shares.
Allotment & Credit Process
Zenith Bank assured investors that shares would be credited to their CSCS accounts by January 30, 2025. Investors who do not have CSCS accounts will have their shares credited via a Registrar Identification Number (RIN).
- Refunds for unsuccessful applications will be processed by January 30, 2025.
- Shares will be available for trading once they are credited to investors’ accounts.
Market Confidence & Strategic Implications
Zenith Bank’s fully subscribed rights issue reaffirms investor confidence in the bank’s financial strength and growth strategy. The proceeds from the capital raise will enhance capital adequacy, support loan growth, and fund digital banking initiatives.
Why This Rights Issue Matters:
✅ Stronger Capital Base: The additional capital will enhance liquidity and financial flexibility.
✅ Supports Loan Growth: Enables expansion in corporate and retail lending.
✅ Digital Transformation: Funds technology investments to improve customer experience.
✅ Market Confidence: Oversubscription shows trust in Zenith Bank’s long-term performance.
With this successful capital raise, Zenith Bank is well-positioned to sustain profitability, expand market share, and navigate macroeconomic challenges.
What’s Next for Investors?
- Trading on the NGX: Investors can trade their newly acquired shares after CSCS account crediting.
- Growth Prospects: Zenith Bank’s strong fundamentals and digital banking push make it a key stock to watch.
- Dividend Potential: With a stronger balance sheet, investors anticipate robust future dividend payouts.
Zenith Bank’s rights issue success signals strong investor optimism, reinforcing its position as one of Nigeria’s leading financial institutions.
