Table of Contents
Key Points
- Zenith Bank raises $230.3 million in oversubscribed rights issue, exceeding N290 billion ($190.5 million) target, boosting capital for growth.
- The offer was oversubscribed by 160.47%, highlighting strong investor confidence in the bank’s growth strategy.
- The raised capital will fuel Zenith’s expansion in Africa and Europe, as well as its investment in digital banking.
Zenith Bank Plc, under the leadership of Nigerian banker Jim Ovia, has successfully raised N350.4 billion ($230.3 million) through its rights issue and public offer, surpassing its initial target of N290 billion ($190.5 million). This milestone solidifies Zenith’s position as one of Nigeria’s top-capitalized financial institutions.
In a statement to the Nigerian Exchange Group (NGX) on Sunday, Jan. 26, 2025, the bank announced that it had received regulatory approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) for the capital raise.
Investor confidence shines through
The rights issue and public offer, which were launched on Aug. 1, 2024, and closed on Sept. 23, 2024, saw overwhelming demand. Zenith offered 5,232,748,964 ordinary shares at N36.00 ($0.023) each through the rights issue and an additional 2,767,251,036 shares at N36.50 ($0.024) each through the public offer.
The public offer was oversubscribed by 160.47 percent, with 4,440,587,250 shares allocated following regulatory verification. The rights issue saw a full allotment with a 100.18 percent subscription, bringing the total share capital to N614.65 billion ($408.8 million). This exceeds the CBN's minimum requirement of N500 billion ($328.5 million) for international banks ahead of the March 2026 deadline.
Fresh capital to drive regional, global expansion
Group Managing Director/CEO Adaora Umeoji praised the outcome, saying, “This success is a clear reflection of the confidence investors have in Zenith Bank’s growth strategy and vision. It gives us a stronger foundation to remain competitive and profitable.” She also commended the regulators for their transparency and highlighted that the capital raise would fuel economic growth both in Nigeria and across the region.
The funds will be used to accelerate Zenith’s expansion in Africa and Europe, as well as to enhance its investment in technology-driven banking services. The bank’s ongoing efforts in digital transformation and financial inclusion further solidify its leadership in the Nigerian and Anglophone West African markets.
Founded in 1990 by Jim Ovia, who still holds a 16.2 percent stake (5.08 billion shares), Zenith Bank has remained a key player in Nigeria's banking landscape, achieving a 27 percent compound annual revenue growth rate over the past five years. The bank’s European expansion took a significant step forward in 2024 with the opening of a branch in Paris, strengthening its presence in Francophone Africa and Europe.
Strengthening market leadership
Zenith Bank’s impressive Q3 2024 results underscore its leadership position. The bank reported a 90.5 percent increase in profit, reaching N827.28 billion ($543.46 million), up from N434.17 billion ($285.22 million) the previous year.
With this capital raise, Zenith Bank is not only meeting regulatory requirements but also positioning itself as a dominant force in Africa's financial sector, ready for continued growth and leadership.
