Recapitalisation: Zenith Bank increases shares proposal to 31.3bn

One of Nigeria’s leading commercial bank, Zenith Bank Plc is proposing to create 31.3 billion new shares, in order to raise funds for recapitalization.

Though the exact amount was undisclosed in the filing with the Nigerian Exchange Group, NGX on Friday, it is aimed at raking in additional capital to meet up with the deadline.

It is recalled that the Central Bank of Nigeria, CBN had issued directive on recapitalization for all categories of banks in Nigeria.

The bank proposes amending its articles of association to reflect the new share capital of N31.3 billion. This would bring the total issued shares to 62.7 billion, with each share valued at 50 kobo.

“ Clause 6 of the Company’s Memorandum of Association and Clause 9 of the Company’s Articles of Association are hereby amended to reflect the new share capital of N31.3 billion by the creation of the addition of up to 31.3 billion ordinary shares of NO.50 Kobo each ranking pari-passu with the existing ordinary shares of the company bringing the total issued shares of the Company to 62.7 billion, ordinary shares of NO.50 Kobo each,” the bank said.

The plan was detailed in a notice ahead of its third Annual General Meeting to be held on May 8.