Zenith Financial institution Plc has reassured its shareholders that its present shareholding will stay unchanged in the course of the financial institution’s ongoing mixed providing.
Zenith Financial institution Plc’s Group Managing Director, GMD, Adaora Umeoji, gave the peace of mind on the “Reality Behind the Mixed Provide” occasion held on the Nigerian Change Ltd., NGX, on Monday in Lagos.
Ms Umeoji stated that the financial institution was providing 65 per cent of its shares to present shareholders and 35 per cent to the general public to keep away from diluting present holdings.
She stated that Zenith Financial institution, on August 1, launched a mixed providing of eight billion items of shares to lift a complete capital of N289.4 billion, and set to shut on September 9.
“A breakdown exhibits the shares supplied exhibits that 5.23 billion items of shares of 50k every at N36 per share to its present shareholders by way of a rights difficulty of 1 new share for each six held.
“We’re additionally providing 2.77 billion strange shares of 50k every at 36.50 per share to the general public by way of a public provide, according to the Central Financial institution of Nigeria (CBN) recapitalisation directive to Nigerian banks.
“Once more, 35 p.c of the proceeds realised from the continued mixed providing might be used to fund the financial institution’s growth technique and enhance its footprint in Africa and different components of the world,” she stated.
Ms Umeoji additional stated that 20 p.c of the fund would even be used to boost the financial institution’s Info Expertise, IT infrastructure and digital capabilities.
The financial institution chief stated that the steadiness of 45 per cent raised could be deployed as working capital to assist the true sector of the financial system.
“We’re very assured that after the continued recapitalisation train, the financial institution will expertise exponential development, and shareholders will get higher worth for his or her funding.
“Our dominant footprint in Nigeria, West Africa, and our worldwide community presents thrilling development alternatives.
“We at the moment have subsidiaries and consultant workplaces in Ghana, Sierra Leone, Gambia, UK, UAE and China; and we lately obtained a banking license to begin operations in Paris.
“We’re going to leverage on the Paris subsidiary to consolidate our enterprise within the African Francophone area ranging from Cote d’Ivoire and Cameroon.
“All our subsidiaries are making good revenue and contributing virtually 20 per cent to the group’s efficiency,” she stated.
In response to her, the financial institution’s historic and present monetary efficiency, in addition to its prospects present a compelling purpose for buyers to put money into it.
The GMD said that the financial institution’s funding in its individuals, know-how and repair had remodeled it into a world model, and positioned it among the many prime 10 banks in Africa and one of the best in Nigeria.
Ms Umeoji added that in rating, in comparison with its friends, and backed by info and figures, Zenith Financial institution emerged the primary financial institution by Tier-one capital, shareholders’ funds, market capitalisation, revenue earlier than tax and in dividend payout.
She stated: “As on the finish of 2023 monetary 12 months, we paid a dividend of 4 Naira per share, making us the very best dividend paying financial institution in Nigeria.
“This pattern has been sustained up to now 5 years. Our dividend payout was 25 per cent of our natural revenue with out Overseas Change (FX) revaluation good points.
“This suggests that now we have the capability to even pay extra dividend organically with out FX revaluation good points.
“The overall property of the financial institution stood at N20.4 trillion, whereas our complete deposit legal responsibility stood at N15.2 trillion, inserting us among the many prime three banks on this class.”
Accordingly to her, the financial institution recorded the most important mortgage portfolio of N7.1 trillion and NPL standing at 4.4 per cent, which is effectively beneath trade common.
“This exhibits our strong threat administration capability. Zenith Financial institution’s Tier-one capital was N1.9 trillion, indicating the very best within the Nigerian banking trade.
“Shareholders’ funds stood at N2.3 trillion, whereas we recorded a market capitalisation of N1.3 trillion Naira, which can also be the very best within the trade.
“The Financial institution achieved PBT of N796 billion, making us probably the most worthwhile financial institution in Nigeria,” she added.
In his remarks, the Chief Government Officer of the NGX Group, Mr Temi Popoola, counseled the financial institution’s strategic use of funds to boost its digital infrastructure and assist its retail and company banking segments.
He famous that this aligned with NGX’s imaginative and prescient to develop its market presence and ship superior worth to buyers.
The chief government officer of the NGX, Jude Chiemeka, additionally counseled the financial institution for its company governance, which contributed to the integrity of the market and attracted worldwide buyers.
Mr Chiemeka emphasised that Zenith Financial institution’s itemizing on the NGX’s premium board signifies excessive company governance requirements, reinforcing the financial institution’s fame and fostering investor confidence.
