By Onome Amuge.
FBN Holdings Plc is seeking to raise N139 billion in additional capital through a rights issue, as disclosed in a notice from the Nigerian Exchange Limited (NGX) to trading license holders.
The notice states that the lender’s stockbrokers, FBNQuest Securities, applied on the company’s behalf for the approval and listing of 8,973,823,198 ordinary shares at N15.50 per share on the basis of one new ordinary share for every four ordinary shares held as of the close of business on October 9, 2023.
In July, the company had announced plans to raise capital through a rights issue for future expansion projects. The notice for the company’s 11th annual general meeting stated that, “There shall be a capital raise. The capital raise transaction shall be by way of a rights issue, on such terms and conditions and on such dates as may be determined by the directors, subject to obtaining the approvals of the relevant regulatory authorities.”
This announcement indicates that the company is actively pursuing a rights issue as a means of raising capital, with the intention of using the funds to finance future expansion projects.
At the AGM, a majority of shareholders, representing 98.76% of those with voting rights, approved an increase in the company’s issued share capital from N17.95 billion of 35,895,292,792 ordinary shares to N22.43 billion, by creating 8,973,823,198 ordinary shares of 50 kobo each. Only 1.24% of shareholders voted against the resolution. This outcome indicates that the company has the support of its shareholders to increase its capital base through a rights issue.
