By Kayode Ogunwale

 

 

The Group Managing Director/Chief Executive Officer of Zenith Bank Plc, Dr. Adaora Umeoji, has emphasized the importance of investing in the bank’s ongoing N290 billion hybrid offer for global growth.

This call to action was made during the bank’s Facts Behind the Offer presentation at the Nigerian Exchange Limited (NGX) in Lagos.

Zenith Bank has structured its offer to provide opportunities for existing shareholders and the general public.

The bank’s existing shareholders can purchase approximately 5.23 billion units of shares at N36 per share through a rights issue, giving them one new share for every six held. Simultaneously, the bank makes 2.77 billion ordinary shares available to the public at N36.50 per share through a public offer.

The offer, which commenced on August 1, is set to conclude on September 9, 2024.

With a clear focus on global growth and expansion, Zenith Bank aims to attract a diverse range of investors keen on participating in its strategic initiatives.

Umeoji described Zenith Bank as a futuristic financial institution that values the loyalty of its existing shareholders.

She assured investors of an enhanced dividend payment, noting that Zenith Bank remains the highest dividend payment bank in the industry, with a dividend payment of N4 per share in the 2023 financial year.

Umeoji also assured the investing community that the bank would not dilute its shareholding structure after the recapitalisation exercise.

She said that the bank would remain responsive to the yearnings of prospective investors who want to be part of the Zenith success story.

“We are very conscious of not diluting our existing shareholding structure, which is why we are offering 65 percent to our existing shareholders and 35 percent to the public.

“We are very confident that after the ongoing recapitalisation exercise, the bank will experience exponential growth, and shareholders will get greater value for their investment,” she said.

Commenting on the offer proceeds, she said the bank had a track record of efficient capital utilisation.

She said Zenith Bank was undertaking the offer to increase its capital base in line with the new minimum capital requirement and to pursue its strategic objectives including financing its strategic business developments and expansion into other geographic markets.

Umeoji said that 35 percent of the proceeds realised from this combined offering would be used to fund an expansion strategy to increase its footprint in Africa and other parts of the world.

She added that 20 percent of the proceeds would be used to enhance its information technology infrastructure and digital capabilities.

“The balance of 45 percent will be deployed as working capital to support the real sector of the economy with a focus on the retail and SME segments,” she said.

Umeoji said the bank had engaged some of the best transaction partners, such as Stanbic IBTC Capital, Quantum Zenith, Cardinal Stone, Chapel Hill Denham and Coronation Capital, among others, to ensure the success of the offer.

She said the investors can purchase the shares through the NGX invest platform, Zenith Bank digital platforms and by visiting any of its branches across the country.

“Our historical and current financial performance, as well as our prospects, provides a compelling reason why you should invest in Zenith Bank,” she said.

Umeoji said the bank’s Tier-1 capital stood at N1.9 trillion, the highest in the Nigerian banking industry as of December 31, 2023.

She noted that the bank’s shareholders’ funds stood at N2.3 trillion, the highest in the industry.

“We recorded a market capitalisation of N1.3 trillion also the highest.

“The bank achieved profit before tax of N796 billion, making us the most profitable bank in Nigeria.

“We paid a dividend of N4 Naira per share, making us the highest dividend-paying bank in Nigeria.

“This trend has been sustained in the past five years. It would also interest you to note that our dividend payout was 25 percent of our organic profit without foreign exchange revaluation gains.

“This implies that we can even pay more dividends organically without FX revaluation gains,” she said.

The Chairman of NGX, Mr Ahonsi Unuigbe, stated that “with a capital base of N1.8 trillion as of December 2023, Zenith Bank has consistently demonstrated its relevance in the financial services landscape in our country.

“The bank has positioned its business for sustainable long-term growth. With over 30 years in existence, founded in January 1990 and listed on our exchange in 2004.

“The bank has continuously expanded its operations, both within and beyond,” he said.

Also speaking, the Chief Executive Officer of NGX,  Mr Jude Chiemeka, commended Zenith  Bank’s transparency and performance since inception.

Chiemeka reiterated NGX’s commitment to supporting the bank in its capital market endeavors.

He said that companies listed on the Premium Board of the NGX have the highest level of corporate governance.

Chiemeka said that Premium Board companies speak to the integrity of the market, which Zenith Bank is among.

The Doyen of Stockbrokers, Alhaji Rasheed Yusuf, highlighted the bank’s consistent dividend payments and robust financial performance, making it an attractive investment.

Yusuf said that  Zenith Bank had maintained an impressive performance urging investors to participate actively in the combined offer.