Nigeria’s Zenith Bank listed $850 million worth of its ordinary shares on the London Stock Exchange as global depository receipts (GDRs) at $6.80 apiece, the bank said on Thursday.
One GDR represents 50 ordinary shares, the bank said, adding that JP Morgan is the depository bank, while Citi is the custodian. It listed 125,000,000 units of the receipts.
Zenith Bank Chief Executive Godwin Emefiele said the listing will allow foreign investors to buy their shares on the LSE and improve liquidity rather than to raise capital immediately.
The lender has a primary listing in Nigeria with a market capitalisation of more than $4 billion.
“The GDR will allow us to raise money cheaply in the future,” Emefiele, told CNBC Africa television, adding that Zenith was well capitalised with a capital ratio of 30 percent.
Emefiele said the bank’s operations were focused on Nigeria and he expected plenty of financing opportunities to come from developments in the infrastructure and power sectors in Africa’s second-biggest economy.
Nigeria is reforming its infrastructure and power sectors, creating financing opportunities for banks as it tries to diversify away from its commodity-based economy in order to boost growth and unlock a consumer market of 160 million people.
The LSE this month said it expected an increase in new listings from African companies this year as businesses in the continent’s fast-growing economies seek to attract foreign investors.