Investors have something to look forward to following the announcement in Lagos, that Zenith Bank Plc, has concluded arrangements to return to the capital market to raise about N130 billion in a combined rights issue and public offer.
The bank, which early this week confirmed its position as the toast of investors with a strong first quarter result showing a gross earning of N28.86 billion for the first period ending September 30, 2007, is offering for subscription 1.763, 000, 000 ordinary shares of 50 kobo each at N38.90 and a rights issue of 1,654,557,911 units at N36.90 per share.
As at the end of trading activities on Wednesday, Zenith stocks were trading for N46.09, meaning that at the offer prices, the shares on offer are coming at a discount of at least N10 per share.
The bank’s first quarter results coming on the heels of the full year’s result that saw Zenith Bank emerging the first to cross the trillion naira mark in total assets, the first quarter result is sure to be well received by an eager market.
Details of the first quarter result showed that the bank also recorded a profit before tax of N10.33 billion, up from N6.41 billion last year while profit after tax amounted to N8.06 billion, showing a remarkable jump of 70 per cent over the N4.73 billion recorded for the corresponding period last year.
The bank has enjoyed high patronage on the floor of the Nigerian Stock Exchange (NSE) because of its consistently strong financial performance and did successfully, raised N53.63 billion from a public offer early 2006.
Following the 2006 public offer, Zenith stocks rose gradually from N16.90 to cross the N60 mark, making it the highest priced banking stock in the market. This represented a total gain of N49.24 per share or 291.36 per cent.
Altogether, the bank’s capitalisation on the NSE appreciated by N451.7 billion within the period, meaning that an investor who bought a million shares at N16.9 million during the bank’s last public offer would have made capital gains of N49.2 million within the period.
Zenith bank remains the biggest bank in Nigeria on total assets plus contingents of N1.2 trillion and the most capitalized quoted company with a total market capitalization of over N400 billion.
The bank at the end of its last financial year ending June 30, 2007 paid out a dividend of N9.26 billion representing one naira per share in addition to a four (4) for one (1) bonus issue.
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