LAGOS — ZENITH Bank today opens its doors to investors as sale of its Initial Public Offer of 800 million shares begins. Through the offer, the bank hopes to raise N8.72 billion to finance its operations. Speaking to investors yesterday at the bank’s investors forum, the Managing Director/Chief Executive Officer of Zenith Bank Plc, Mr. Jim Ovia, said the bank’s ordinary share of 50 kobo would be sold for N10.9. Offering reasons for the price, Ovia said: “Zenith Bank IPO is the highest in the history LAGOS — ZENITH Bank
today opens its doors to investors as sale of its Initial Public Offer of 800 million shares begins.
Through the offer, the bank hopes to raise N8.72 billion to finance its operations. Speaking to investors yesterday at the bank’s investors forum, the Managing Director/Chief Executive Officer of Zenith Bank Plc, Mr. Jim Ovia, said the bank’s ordinary share of 50 kobo would be sold for N10.9. Offering reasons for the price, Ovia said: “Zenith Bank IPO is the highest in the history of the Nigerian capital market and has a tract record of being the third most profitable banks and the largest privately-owned bank in Nigeria.”
He allayed the fears of investors that they might not get the volume of shares they planned for as there were indications that the offer may be over subscribed. He urged investors not to be afraid of the offer being over subscribed, saying: “The offer has a provision that will enable the bank allot more shares up to its authorised capital in the event of over subscription. It is, therefore, expected that the proceeds of the IPO will exceed N15billion.”
Mr. Ovia attributed the bank’s success to the team spirit of dedicated and professional management work force.
According to him,“from the projections of the bank during the forecast period, the gross earnings are expected to hit N29.94 billion for the year ending June 30, 2006, from N21.07 in 2004. This increase in gross earnings by 42 per cent between 2004 and 2006 follows the trend of the market share enjoyed by Zenith Bank in the last 14 years. Profit before tax is projected to increase by 62.7 per cent in 2006 from a projected N6.1 billion in 2004. This excellent results make the returns on investment on Zenith shares very attractive and exciting.”
Ovia, however, explained that the offer was being undertaken to raise funds for the purpose of financing the bank’s strategic business development and expansion of its network branches in order to make quality banking more accessible to existing and potential clients. “It will also enable the bank to upgrade its information technology installations to meet the demands of its expanding customers base and provide the bank with additional working capital to support it operations and allow it take advantage of emerging opportunities,” he added.
