Zenith Lists additional 9.67b shares following Capital Raise

By Ologeh Joseph Chibu

Zenith Bank Plc has listed an additional 9.67 billion ordinary shares on the Nigerian Exchange Limited (NGX) following the successful completion of its hybrid offer, which included a rights issue and a public offer.

The listing coincides with a bullish start to the trading week in the Nigerian equity market, which saw a ₦476.99 billion increase in market capitalization, despite a slight decline in the All-Share Index (ASI).

Breakdown of Zenith Bank’s Capital Raise

According to an NGX market bulletin issued on Monday, the newly listed shares stem from the bank’s recent capital-raising initiative:
• Rights Issue: 5.23 billion ordinary shares of 50 kobo each at ₦36.00 per share, fully subscribed.
• Public Offer: 4.44 billion ordinary shares at ₦36.50 per share, which was oversubscribed by 160.47%.

With this development, Zenith Bank’s total issued and fully paid-up shares have increased from 31.40 billion to 41.07 billion ordinary shares of 50 kobo each. The additional listing is expected to enhance liquidity in the bank’s stock and strengthen its capital base as the banking sector undergoes recapitalization.

Market Performance and Investor Sentiment

The Nigerian equity market continued its bullish momentum, with market capitalization rising to ₦66.07 trillion at the close of Monday’s trading session. However, the NGX All-Share Index dipped slightly by 41.70 points (0.04%) to 105,891.33 points.

Investor activity remained robust:
• Trading volume surged by 49% to 567.29 million shares, valued at ₦10.41 billion, exchanged in 17,843 deals.
• Turnover increased by 13%, while the number of deals rose by 39% compared to last Friday’s session.

Top Gainers and Losers
Leading the gainers’ chart:
• Beta Glass Company (+10%) closed at ₦95.15 per share.
• Stanbic IBTC Holdings (+10%) settled at ₦68.20 per share.
• Smart Products Nigeria (+10%) ended at ₦0.22 per share.
• Honeywell Flour Mill (+9.98%) rose to ₦10.47 per share.
Conversely, among the top losers:
• International Energy Insurance (-10%) fell to ₦2.25 per share.
• RT Briscoe (-9.63%) dropped to ₦2.44 per share.
• Julius Berger Nigeria (-8.44%) declined to ₦128 per share.

Sectoral Performance
• The Insurance Index led sectoral gains with a 1.98% increase.
• The Consumer Goods Index and Oil & Gas Index edged up by 0.1% and 0.09%, respectively.
• The Industrial Index remained under pressure, reflecting a 7.67% year-to-date decline.

Market Recap

The Nigerian equity market closed the previous week on a bullish note, with a ₦884 billion gain as the All-Share Index rose by 1.38%, settling at 105,933.03 points.