Business
Nigeria’s largest bank – Zenith Bank lists $850 million worth of shares on London Stock Exchange
Zenith Bank Plc, Nigeria’s largest bank by tier-1 capital and shareholders’ funds, was on Thursday listed on the London Stock Exchange (LSE).
The listing of US$850 million of its shares at US$6.80 each was a major step by the bank at improving liquidity in its stock through Global Depository Receipts (GDRs).
By its size, Zenith Bank’s US$850 million GDR listing is the largest of any Nigerian bank on the LSE to date and is expected to help the bank, with a market capitalisation of US$4.24 billion, access to a wide range of major institutional investors and significantly raise its international profile.
GDRs are negotiable certificates issued by depository banks, which represent ownership of a given number of a company’s shares which can be listed and traded independently from the underlying shares. The instruments are typically used by companies from emerging markets and marketed to professional investors only.
At a formal ceremony held at the LSE, the bank admitted 125 million GDRs, which will trade on LSE’s International Order Book, the world’s largest and most liquid GDR market. Each Zenith Bank GDR represents 50 ordinary shares
Speaking at the event, the Group Chief Executive Officer of Zenith Bank, Godwin Emefiele, said the listing on the LSE would afford foreign investors and fund managers in global emerging markets the opportunity to access the bank’s shares, particularly those, who due to internal policies or procedures are prevented from trading, purchasing, selling shares in markets other than through the LSE.
He also noted that establishing a liquid London GDR line would help Zenith Bank gain access to international investors, particularly those from the global emerging markets who are increasingly showing interest in Nigeria.
