|
 Daily Independent Online.
* Friday,July 16, 2004.
Zenith Bank board approves additional N6.3b shares for
IPO
By
Mojeed Jamiu,
Finance Editor
The
board of Zenith International Bank Plc. has approved additional shares in
an amount up to the bank’s unissued share capital, 570,000,000 shares
valued at N6.3 billion, to be allotted to subscribers in the event of
over-subscription of its on going initial Public Offer (IPO), which
started on July 1.
The
development, according to sources at the bank, will bring the banks offer
up to N15 billion. The sources said it was as a result of the tremendous
enthusiasm, interest and patronage, which the bank’s IPO has generated
since it opened earlier in the month.
The
management of the bank has also assured investors of a dividend payout of
N10 billion within the next three financial years. It promised it would pay N2.2
billion dividend in 2004, N3.5 billion dividend in 2005 and N4.2 billion
in 2006.
The
bank is currently offering for subscription 800,000,000 ordinary shares
of 50 kobo each at N10.90 per share. The offer was meant to raise funds
for financing the bank’s strategic business development and expansion of
its network of branches in order to make quality banking more accessible
to existing and potential clients.
It
would also enable the bank to continuously upgrade its Information
Technology installation to meet the demands of its expanding customer
base and provide the bank with additional working capital to support its
enlarged operations and also allow it take advantage of emerging
opportunities.The Managing Director/Chief Executive Officer of the bank,
Mr. Jim Ovia, had in a letter to prospective investors, said, “The bank
has greatly enjoyed the confidence and patronage of numerous customers
and we will continue to reciprocate their trust and loyalty by continuing
to serve them with greater passion and enthusiasm.”
“We
will continue to build, nurture and protect our brand name as well as our
reputation. We will uphold
our conservative tradition in order to consistently re-enforce our value
judgment and standards. We
are confident that the tract record of our activities of yesterday and
today shall be our guiding light for a better future.”
Also,
the bank’s Deputy Managing Director, Mr. Godwin Emefiele, assured those
desirous of investing in on the IPO of the bank that they would always
remember “ the day they decided to invest in Zenith Bank’s shares, which
they can pass on from generation to generation.”
He
disclosed that with the IPO of the bank, a new dawn would be set in the
Nigerian Capital Market with the offer of 800 million Zenith’s shares to
the Nigerian public.
In
five years, from 1999 to 2003, the bank recorded impressive performance
on many fronts. Total assets plus contingent liabilities grew by 311 per
cent from N37.28 billion to N153.44 billion. Gross earnings increased
from N7.07 billion to N17.84 billion representing 152 per cent growth.
Other indicators like pre-tax profit also grew by 255 per cent from N1.52
billion to N5.44 billion while shareholders’ funds increased from N3.42
billion to N12.65 billion representing 269 per cent growth.
The
bank has also consistently maintained a triple A (Aaa) rating for six
consecutive years since 1999 as adjudged by Augusto & Co, a reputable
consulting firm and rating agency.
The
bank maintained very good asset quality achieving the lowest
non-performing loans to total loans ratio of 1.4 per cent as at 2003-year
end, compared to the industry average of about 18 per cent.
The
rating agency categorised the bank as “…a financial institution of
impeccable financial condition and overwhelming capacity to meet
obligations as and when they fall due.”
|
