Onome Amuge
FBN Holdings Plc has opened a rights issue, offering 5.983 billion ordinary shares at 50k each to existing shareholders at N25 per share, in a bid to raise additional capital totaling N150 billion.
The offering, based on a one-for-six ratio (one new ordinary share for every six shares held), is available to shareholders of record as of October 18.
In a statement issued on Sunday in Lagos, Femi Otedola, FBN Holdings Chairman, highlighted the significance of this capital raise.
Otedola explained that the funds would provide the bank with a strong capital buffer, supporting both domestic growth and expansion across 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, Nnamdi Okonkwo, the Group Managing Director, FBN Holdings Plc, echoed the benefits of the offering.
He 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 FBNH trading activity on the NGX on Monday shows that HodCo began trading at N28.75 per share.
As of 11:15 a.m., FBNH had traded 463,408 million shares worth N13.34 million across 53 transactions.
