Zenith Bank Plc, Nigeria’s largest bank by profit, is offering a hybrid rights and public offer at a significant discount, locking in a 32% potential return for both existing shareholders and new investors. The ongoing offer includes a rights issue of 5.233 billion ordinary shares at N36 per share, available to existing shareholders on a basis of one new share for every six held as of July 24, 2024.
Additionally, the bank is offering 2.767 billion ordinary shares to the general public at N36.50 per share, with a minimum subscription of 250 shares, allowing investors to become co-owners of the bank for as little as N9,125. The application period opened on August 1, 2024, and will close on September 9, 2024.
Recent trading history shows Zenith Bank shares have traded as high as N47.35 per share, indicating a substantial 32% discount in the ongoing offers. With an earnings per share of N21.55 for 2023, these offers yield an attractive 60%, promising significant value for investors.
Zenith Bank’s robust performance in 2023, with a pre-tax profit of N796 billion and gross earnings of N2.13 trillion, positions it as a leader in Nigeria’s banking sector. The bank’s first quarter 2024 results indicate further growth, with gross earnings jumping 189% and profit before tax tripling to N320 billion. Analysts predict that Zenith Bank could surpass a trillion in net profit by the end of 2024, potentially driving its stock to new highs.
Zenith Bank has been recognized as the Best Commercial Bank in Nigeria for four consecutive years by the World Finance Banking Awards and has maintained its status as a top bank in Nigeria and internationally since its founding in 1990. With a focus on digital banking and global expansion, Zenith Bank continues to innovate and lead in the financial sector.
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