Nigerian shareholders can take advantage of the listing.
Zenith Bank was last week listed on the London Stock Exchange, LSE. The bank’s management has applauded the move as one to bring more stability to the bank.
“It is a sign of stability. The bank has strength, and it has moved from just being a local champion,” its spokesperson, Ufot Essien, said.
Below are five basic things Nigerians need to know about the listing on the LSE.
• No new capital is being raised, just an option to convert existing shares into (Depositary Receipts) DR’s
• It is a sponsored DR
• The ratio of ordinary share to Global DR is 50:1; meaning every existing shareholder can convert 50 ordinary shares to 1 GDR.
• JPM (JPMorgan) is the DR depository (same as GRTB LI), there is no sponsoring broker
• To convert would usually carry a $0.05 fee per GDR created however to kick start the programme free movement into the facility is offered for the first 3 months of its life.