Zenith Bank Plc, under the leadership of Nigeria's richest banker, Jim Ovia, is seeking approval from the Nigeria Exchange (NGX) to issue 5.23 billion shares through a rights issue, aiming to raise N188.37 billion ($117 million).
Zenith Bank plans to double capitalAdditionally, the bank plans to double its issued share capital from N15.7 billion ($9.8 million) to N31.4 billion ($20 million). This move follows a directive from the Central Bank of Nigeria (CBN) on March 28, mandating higher minimum capital requirements for banks.
The new capital base for commercial banks with international licenses is set at N500 billion ($316.3 million), while national and regional financial institutions must meet N200 billion ($126 million) and N50 billion ($31.5 million) thresholds, respectively. With a current capital base of N270.75 billion, Zenith Bank needs an additional N229.25 billion ($144.4 million) to comply with the new regulations.
NGX confirms rights issue dateThe NGX confirmed the qualification date for the rights issue as July 24 in a statement signed by issuer regulation department head, Godstime Iwenekhai. Zenith Bank applied for approval through Stanbic IBTC Stockbrokers Limited.
