FBN Holdings Plc has launched a rights issue, providing existing shareholders with the opportunity to acquire 5.983 billion ordinary shares at 50k each, to raise a total of N150 billion.
The offering follows a one-for-six ratio, meaning shareholders will receive one new ordinary share for every six shares they currently hold, available to those on record as of October 18.
In a statement released on Sunday in Lagos, FBN Holdings Chairman Mr. Femi Otedola underscored the importance of this capital raise, noting that the funds will strengthen the bank’s capital buffer, facilitating both domestic growth and expansion throughout Africa.
He said, “This initiative is not only about raising funds but about laying a solid foundation for our future.
“Our goal is to empower First Bank of Nigeria Ltd. with the resources it needs to expand in both wholesale and retail banking, while also fortifying our digital and automation capabilities.
“Supporting this rights issue is a direct investment in our company’s resilience and growth. We’re confident this will deliver an enhanced Total Shareholders’ Return (TSR) over the medium term and reestablish First Bank’s leadership in the financial sector.”
Similarly, the Group Managing Director, FBN Holdings Plc, Mr. Nnamdi Okonkwo, echoed the benefits of the offering.
He also noted that the rights issue received overwhelming shareholder support at FBN Holdings’ 11th Annual General Meeting on August 15, 2023.
Okonkwo said, “This rights issue presents a unique opportunity for our shareholders to maintain their equity stake while bolstering the bank’s capacity to seize new market opportunities.
“This endorsement reflects our shareholders’ trust in the bank’s strategic vision and our commitment to delivering sustainable value,” he concluded.
A review of FBN Holdings Plc (FBNH) trading activity on the Nigerian Exchange (NGX) on Monday indicates that the stock opened at N28.75 per share. By 11:15 a.m., FBNH had traded 463,408 shares, generating a total of N13.34 million across 53 transactions.
