Zenith Bank Plc has extended the deadline for its ongoing Rights Issue and Public Offer by two weeks.
Initially set to close on September 9, 2024, the acceptance period will now end on September 23, 2024.
The extension is in response to disruptions caused by nationwide protests that began on the same day the offer launched, impacting business operations and individual movement across the country.
The Rights Issue and Public Offer were introduced on August 1, 2024, just as nationwide protests commenced, resulting in severe interruptions to business activities and transportation.
These disruptions hindered many potential investors from participating in the offer as originally planned. In light of this, Zenith Bank sought and received approval from the Securities and Exchange Commission (SEC) to extend the application period.
The bank’s decision to extend the deadline is aimed at providing ample time for shareholders and the public to participate fully in the offer, despite the unforeseen challenges posed by the protests.
Significance of the Rights Issue and Public Offer
Zenith Bank’s Rights Issue and Public Offer are part of its strategic plan to raise an additional N290 billion in capital, which will be used to strengthen its operations, enhance market presence, and improve its balance sheet.
The Rights Issue allows existing shareholders to buy additional shares at a discounted price, thereby increasing their equity in the bank. Meanwhile, the Public Offer provides an opportunity for new investors to acquire shares and benefit from the bank’s growth.
The initial deadline was set for September 9, 2024, but the protests across Nigeria, which were sparked by socio-economic grievances, created challenges for investors to engage with the offer in a timely manner.
The extension now offers more time for investors to take part, even as the protests continue to affect various sectors of the economy.
The extension presents an opportunity for existing shareholders to reassess their investment and potentially increase their stake in one of Nigeria’s most prominent banks.
Zenith Bank results
Meanwhile, Zenith Bank reported its 2024 second quarter results showing pre-tax profits topped N406 billion in the second quarter of 2024 as forex-related gains boosted the bottom line.
The profits represent a 370% increase year on year when compared to the N86.8 billion reported a year earlier.
Zenith Bank’s profits got a major boost from gains made on its trading books which soared to N871.6 billion for the first 6 months of the year up from N77.9 billion a year earlier
Zenith Bank shares is trading at about N37 per share.
