Olufemi Adeyemi 

Zenith Bank is seeking approval from the Nigerian Exchange Group (NGX) for a rights issue of 5.232 billion shares to raise N188.378 billion.

Zenith Bank Plc has requested permission from the Nigerian Exchange (NGX) Limited to offer 5.23 billion shares through rights issue in order to raise N188.37 billion.

In statement released on Wednesday and signed by Godstime Iwenekhai, head of the issuer regulation department at NGX, the qualification date for the rights issue is July 24.

NGX stated that Zenith Bank submitted the request for approval through Stanbic IBTC Stockbrokers Limited, the bank's stockbroker.

The capital markets regulator announced Zenith Bank’s intention to list a rights issue of 5,232,748,964 ordinary shares, each with a nominal value of 50 Kobo, at a price of N36.00 per share. This offering will be made on the basis of one new ordinary share for every six existing ordinary shares held as of the close of business on Wednesday, July 24, 2024.

On April 12, Zenith Bank made a public announcement regarding its intention to secure funding of an undisclosed amount through a combination of international and Nigerian capital markets.

According to the organization’s statement, the capital procurement will be facilitated through the issuance of ordinary or preference shares, either via private placement, rights issue, or a combination of both.

Additionally, the organization intends to propose an increase in its issued share capital from N15,698,246,893.50 to N31,396,493,787 during the upcoming Annual General Meeting (AGM).

Zenith Bank’s capital-raising initiative follows the directive issued by the Central Bank of Nigeria (CBN) on March 28, which mandated commercial, merchant, and non-interest banks to enhance their minimum capital requirements.

The Central Bank of Nigeria (CBN) has revised the minimum capital requirements for commercial banks. Institutions with international licenses must now maintain a capital base of ₦500 billion, while national and regional financial institutions must hold ₦200 billion and ₦50 billion, respectively.

With its current capital base of ₦270.75 billion, Zenith Bank requires an additional ₦229.25 billion to meet the new minimum capital requirement for commercial banks with international licenses.