Posted by By Omoh Gabriel, Business Editor on
AS the second phase of banking consolidation begins, Zenith Bank Plc is returning to the capital market to raise N50.7 billion through the offer for subscription of three billion ordinary shares of 50k at N16.90. The bank which last year made its Initial Public Offer had its offer over-subscribed by over 400 per cent.
LAGOS - AS the second phase of banking consolidation begins, Zenith Bank Plc is returning to the capital market to raise N50.7 billion through the offer for subscription of three billion ordinary shares of 50k at N16.90. The bank which last year made its Initial Public Offer had its offer over-subscribed by over 400 per cent.
The proceeds of the proposed offer, expected to open mid-February, are expected to be utilised for branch expansion, information and communications technology and beefing up of the bank's working capital.
The bank is making the public offer at N16.90 per share even though the bank's shares closed at N19.64 at close of trading on Thursday, January 12, 2006. Investors who bought the banks shares at N10.90 when the IPO opened on July 1, 2004 have seen their investment appreciate by over N8.
The announcement of the public offer caused excitement at the stock market with stock brokers and analysts predicting another successful outing for Zenith Bank which was one of the first new generation banks to meet the Central Bank of Nigeria's (CBN) N25 billion capital base requirement.
The announcement which is also coming on the heels of the release of the bank's half year result that showed that the bank earned a princely N6.4 billion Profit Before Tax for the half year ended December 31, 2005 is expected to excite the investing public especially those who had their monies returned in compliance with regulatory requirements during the bank's IPO.