Zenith Bank Slumps as Investors Trade Huge Volume
Following the announcement of the group rights issue and public offer, negative trading on the lender’s stock caused Zenith Bank Plc’s market value to drop by more than 2% on the Nigerian Exchange (NGX).
Some value hunters in the local bourse trimmed their interest in the Tier-1 lender as the bank will begin capital raising from the market on August 1, 2024.
As investors await the release of Zenith Bank’s second quarter 2024 earnings, the share price of the company fell to N33.85 on Tuesday, losing over 2% of its market capitalization.
Investors may choose to buy Zenith Bank shares on the open market, and shareholders may exercise their right by taking more shares via rights issues or subscribe to the public offer at N36.50.
Data from the Nigerian bourse showed that the bank’s market valuation dropped to N1.06 trillion as investors trading highs and lows exited their positions before the August capital raising.
MarketForces Africa reported that the Ajose Adeogun based Tier-1 bank announced plans to sell rights issues and public offers to investors in a bid to raise N290 billion.
It is offering to sell 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share via rights issue. Concurrently, Zenith Bank will offer for subscription presents 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share.
Reacting to the notice, investors dumped the bank shares, crashing the price, which is now trading at a 28.51% discount to its 52-week high. The bank share price had climbed to N47.35 in the equities market early in 2024.
Yesterday, Zenith Bank recorded the highest trading volume with 44.23 million units, as well as the highest value chart with ₦1.51 billion. #Zenith Bank Slumps as Investors Trade Huge Volume Oil Prices Sink Further over Demand Concerns
