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Zenith Bank Plc’s market value has experienced a notable decline, falling by over 2% on the Nigerian Exchange (NGX), following the announcement of a group rights issue and public offer. The drop comes as the Tier-1 lender prepares to initiate a capital raise starting August 1, 2024.
Investors have shown reduced interest in Zenith Bank’s stock amid anticipation of the bank’s second-quarter 2024 earnings report. The bank’s share price fell to N33.85 on Tuesday, reflecting a loss of more than 2% of its market capitalization.
Shareholders have the option to either purchase Zenith Bank shares on the open market or take advantage of the rights issue and public offer, with shares priced at N36.50. The market data reveals that Zenith Bank’s valuation dropped to N1.06 trillion, influenced by high trading volumes and investor repositioning ahead of the capital raising.
Zenith Bank, headquartered on Ajose Adeogun Street, has announced plans to raise N290 billion through a combination of rights issues and public offers. The bank is offering 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share through the rights issue. Additionally, 2,767,251,036 ordinary shares of 50 Kobo each will be available for subscription at N36.50 per share.
Following this announcement, the bank’s share price has plummeted, trading at a 28.51% discount from its 52-week high of N47.35, which was reached earlier in 2024. On Tuesday, Zenith Bank recorded the highest trading volume with 44.23 million units and led the value charts with ₦1.51 billion in transactions.
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