FBN Holdings Plc, last Friday, in Lagos, held the signing ceremony to commence its rights issue offering of 5,982,548,799 ordinary shares of 50 kobo each at N25.00 per share to its existing shareholder on the basis of one new ordinary share for every 6 ordinary shares held as at October 18, 2024.
The offer is part of the company’s plan to recapitalize its commercial banking subsidiary, First Bank of Nigeria Limited, with a view towards increasing the bank’s capacity for business development and growth.
According to the company, the bank will utilise the fresh capital to extend business to its Wholesale and Retail business segments; further enhance its automation and digital banking offerings as well as its African expansion plans.
Speaking on the rights Issue, the Chairman FBNHoldings, Mr. Femi Otedola, encouraged shareholders to support the aspirations of the company by taking up rights thereby strengthening the company and in particular the bank for growth and improved performance that will deliver significantly enhanced Total Shareholders’ Return (TSR) in the medium term and return the lender to its rightful place in the league of Financial Institutions.
While speaking, at the Signing Ceremony, the Group Managing Director, Mr. Nnamdi Okonkwo said: “The rights issue gives the shareholders the opportunity to retain the relative holding in the company while providing the required Capital buffers to maximize business opportunities in the economies where we operate.”
FBNHoldings’ shareholders had at its 11th Annual General Meeting (AGM), held on August 15, 2023, unanimously supported the rights issue.