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Zenith Bank plans N50.7b public shares offer

Posted by Guardian on 2006/01/26 | Views: 621 |

Zenith Bank plans N50.7b public shares offer


ZENITH Bank is returning to the stock market to raise N50.7 billion through the offer for sale of three billion ordinary shares of 50 kobo each at N16.90 per share. The offer is coming at an attractive discount of N2.74 per share.

ZENITH Bank is returning to the stock market to raise N50.7 billion through the offer for sale of three billion ordinary shares of 50 kobo each at N16.90 per share. The offer is coming at an attractive discount of N2.74 per share.

Investors who bought the bank's shares at N10.90 when the IPO opened on July 1, 2004 have seen their investment appreciate by over N8.

Proceeds of the offer, scheduled to open next month, are expected to be utilised for branch expansion, information and communications technology and beefing up working capital.

Speaking on the offer, renowned stockbroker, Wole Abegunde who is the managing director and chief executive officer of Meristem Securities Limited, said investors would be particularly happy to note that Zenith Bank was already setting the pace for the second phase of consolidation.

He noted that the bank remains a good place to invest because of its strong, stable management as well as its expansion plans, which witnessed a leap from 78 branches in 2004 to 147. He also said the prospect for a successful outing was bright because the bank delivered on all promises made when it went to the market through an initial public offering (IPO), which was 554 per cent oversubscribed.

The announcement of the offer, which is also coming on the heels of the release of the bank's six month result that showed that it earned a N6.4 billion profit before tax for the half-year ended December 31, 2005 has already put shareholder groups on notice.

Both the President of the Independent Shareholders Solidarity Association, Sunny Nwosu, and his Nigerian Shareholders Solidarity Association of Nigeria (NSSA) counterpart, Asiwaju Akintunde Asalu, have already endorsed the bank's planned return to the stock market.

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