Zenith Bank Plc has successfully listed an additional 9.67 billion ordinary shares on the Nigerian Exchange Limited (NGX), following the completion of its hybrid capital-raising exercise. This included a rights issue and a public offer, aimed at bolstering the bank’s capital base amid the ongoing banking sector recapitalisation.
According to the NGX market bulletin, the bank’s rights issue of 5.23 billion shares, priced at N36.00 per share, was fully subscribed. Meanwhile, the public offer of 4.44 billion shares at N36.50 per share recorded a massive oversubscription of 160.47%, demonstrating strong investor confidence in the bank.
With this listing, Zenith Bank’s total issued and fully paid-up shares have surged from 31.40 billion to 41.07 billion ordinary shares of 50 kobo each. Analysts expect the additional shares to enhance liquidity in Zenith Bank’s stock and solidify its financial position in the market.
Stock Market Sees Strong Gains Despite Index Dip
Despite a slight decline in the All-Share Index (ASI), the Nigerian stock market began the week on a bullish note, adding N476.99 billion to its total market capitalisation.
At the close of trading on Monday, the NGX market capitalisation rose to N66.07 trillion, while the ASI dipped marginally by 41.70 points (0.04%) to settle at 105,891.33 points.
Investor activity remained strong, with trading volume surging by 49% to 567.29 million shares, valued at N10.41 billion, exchanged in 17,843 deals. Turnover rose by 13%, while the number of deals increased by 39% compared to the previous trading session.
Top Gainers and Losers
- Gainers: Beta Glass Company, Stanbic IBTC Holdings, and Smart Products Nigeria led the gainers’ chart with a 10% increase each, closing at N95.15, N68.20, and N0.22 per share, respectively. Honeywell Flour Mill also rose by 9.98% to N10.47 per share.
- Losers: International Energy Insurance recorded the highest loss, dropping 10% to N2.25 per share, while RT Briscoe and Julius Berger Nigeria declined by 9.63% and 8.44%, respectively.
Sectoral Performance
- Insurance Index posted the highest gain of 1.98%.
- Consumer Goods and Oil & Gas Indices recorded slight advances of 0.1% and 0.09%, respectively.
- Industrial Index remained under pressure, showing a year-to-date decline of 7.67%.
Investor Outlook
With the continued strong investor sentiment and positive corporate earnings reports, analysts predict further market gains in the coming weeks. The recent rally, coupled with increased trading activity, highlights renewed confidence in Nigerian equities, particularly within the banking sector.
