ThisDay - Investors who purchased Zenith Bank’s shares in 2004 have enjoyed capital gains of about 600% in addition to generous dividends payout of about N20 billion in just three years.

Analysis of the bank’s Annual Report for the past three financial years showed that the bank has continued to surpass its dividend projections year over year. For example, the bank paid a dividend of N6.6 billion at the end of its 2004/2005 financial year up from the 4.2 billion (or 70 kobo per share) paid out the 2003/2004 financial year. Also, the projection of N5.1 billion for 2006 was surpassed by over N1.1 billion when it actually paid out N6.6 billion (or N1.10 per share), representing a 29.6 per cent increase. In 2007, the bank projected N7.6 billion but paid out N9.2 billion (or N1 per share), representing a 21 per cent increase.

Every year since its IPO, the bank has scored high on credibility among investors for usually surpassing the dividend projections made when it went public. 

Zenith bank IPO is currently opened again in the market in an offer for subscription of 1,763,000,000 ordinary shares of 50k each at N38.90k and a rights issue of 1,654,557,911 units at N36.90k. The offer will run from Thursday, December 6th, 2007 till January 17, 2008. Before trading was frozen, as required by law, Zenith stock traded for N46.09, indicating that the shares on offer are coming at a discount of at least N10 per share.

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