Written by Olushola Okunlade
Nigerian Exchange Limited (NGX) has announced the presentation of Facts Behind the Combined Offer (Public Offer and Rights) by the board and management of Zenith Bank Plc.
Zenith Bank’s combined offer means the bank will be raising funds through a Rights Issue and a Public Offer. The bank is unveiling a combined offer to give both existing shareholders and new investors an opportunity to be part of Zenith Bank’s growth story.
The bank’s leadership, led by the GMD/CEO, Dame (Dr) Adaora Umeoji will discuss the opportunities available to investors through its capital-raising exercise and highlight the potential of the combined offer in shaping the organization’s future.
Zenith Bank in its statement said “All existing shareholders as at the Qualification Date are eligible to participate in the Rights Issue while The Public Offer is open to everyone.
The previously postponed “Facts Behind the Combined Offer” (Public Offer and Rights Issue) presentation by the board and management of Zenith Bank Plc is now slated for Monday, 12 August 2024.
What To Know About Public Offer and Rights Issue? Rights Issue is an offering of rights to the existing shareholders of a company that gives them an opportunity to buy additional shares directly from the company at a discounted price rather than buying them in the secondary market. The number of additional shares that can be bought depends on the existing holdings of the shareowners.
Public Offer is the first offering to the public of the common stock of a formerly privately held firm. The sale of the stock provides an infusion of cash to the parent. The cash may be retained by the parent or returned to shareholders.
The Public Offer process is closely scrutinised by Nigerian Exchange Limited (NGX) and Regulators, but this does not exclude the development of various misconducts and frauds. The emergence of new financial market in Nigeria changed the global balance of capital flows and opened up new opportunities for companies looking to go public.
