Zenith Bank Plc commences 3rd offer in 4 years.
December 6th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
For the third consecutive year in a row,Zenith Bank Plc is once again set to offer Nigerians a lifetime opportunity of being a part of their success story. This is coming in form of a public as well as a rights offer packaged by the bank as it seeks to raise N130 billion from the capital market.This is the highest so far that the Nigerian Stock exchange has witnessed.
The hybrid offer which opens today, December 6, 2007 is expected to run up till January 6, 2008. It is made up of a rights issue of 1,654,557,99 units each at N36.90 per share and public offer of 1,763,300,00 ordinary share of 50 kobo each at 38.90 kobo per share.
The bank in 2004 had its IPO at N10.90 per share, another PO in 2005 at N16.90 per share and currently a PO and rights issue. Before now, the bank held the record of paying the highest dividend (N1.10) in 2006 but has been surpassed by UBA(1.20) in 2007.
The PO is discounted at about 18 percent, while the rights issue is discounted at about 24 percent as the share price is currently frozen at N46.09 on the floor of the exchange. The bank has already released its first quarter result for its current financial year, which was very impressive.
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.
Like the slogan says, “In Your Best Interest”, i think discerning investors should grab this opportunity and invest in this offer. For those who do not know, the share price has appreciated by over 600 percent in just 3 years. What else are you waiting for?
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Zenith has offered a way thru CitiBank for those who’re outside Nigeria to be able to invest. I was wondering what some of you guys think about that?
Understanding Nigeria Economics will give you better ideas of how to invest.
The higher the rate of return the higher the risk.
Most Nigerians are clueless about what the bank invest their money into.
But don’t forget Nigeria banking is in the boom sessions now. So can they handle the bull sessions when you investment will worthless.
Best advice is to diversification of your investment.
Zenith seems to be doing well, but do you known why the 3rd offer in 4th years.
I will never buy banking shares from economist views of it all.
adeshina,alagbe
Expense Manager
New York City
i bought zenith bank publc offer by january 2008 ,and we are been promised that the share certificate will be issued to us in six month time but up till now we have not received any thing.what is happening? and for some body like me i no longer stay in the place which i put as my address, how would i collect my certificate when it comes
I bought your share since with no certificate, whats off
i bought zenith bank shares till now no certificate what is happening pls i want my certificate
What is going on with Zenith Bank,i havent received My certificate since January,they promised to issue it after six Month and nothing to show for that now,im sick of all these mess,I bought FinBank after them and i have my share Cert now,Pls….do something on it b4 its too late
call me on 08033623378
thanks