Zenith Bank Plc, Nigeria’s largest lender by market capitalisation, will raise ₦290 billion ($182 million) to support expansion plans and increase its loan book. On Monday, the bank flagged off its combined offer on the floor of the Nigeria Exchange Limited (NGX).

Zenith Bank is offering 5.2 billion shares at ₦36.00 per share to existing shareholders and 2.7 billion shares at ₦36.50 to the general public. The offer opened on August 1 and will close on September 9, 2024.

For Zenith Bank, which became a publicly traded company in 2004 and now holds a market cap of ₦1.9 trillion, the appeal for its shares is the history of maximizing shareholder value.

“We paid a dividend of ₦4 per share–the highest paid by any bank in Nigeria. The trend has been sustained for the last five years. We paid the shares from organic profits without FX revaluation gains. Zenith Bank’s offer is investors’ delight,” Adaora Umeoji, Zenith Bank’s Group MD/CEO, said during her presentation.

Zenith Bank also mentioned its growth over the decades from a mid-size lender to the largest tier-1 bank by market value. Its corporate banking arm contributes 58% to the group’s revenue, while the retail segment accounts for 42%.

“All the subsidiaries are making almost 20% profits and contributing to group profits,” Umeoji said.

What will Zenith use the money for?

35% of the total capital raised—₦99 billion— will be used to fund the strategic expansion of the banking business with a plan to expand footprints in West Africa and set up shop in Paris, the French capital to consolidate Francophone expansion. The

With 33 million customers, Zenith Bank hopes to focus on the retail and SME segments. 45% of the total capital raised₦128 billion—will be used for working capital to serve both segments. The remaining 20% of the proceeds₦57 billion—will be invested in IT infrastructure.