FBN Holdings Plc has kicked off a substantial capital raise via a rights issue, proposing nearly 6 billion new shares to reinforce its core subsidiary, First Bank of Nigeria Limited.
This rights issue, estimated at around ₦149.6 billion, was officially unveiled during a signing ceremony at the company’s headquarters in Marina, Lagos. Current shareholders can subscribe to one new share for every six shares they own, with a share price set at ₦25.00.
FBN Holdings Chairman Femi Otedola highlighted the importance of this initiative during the ceremony, stating, “This capital raise will enhance the bank’s potential for growth and improved performance.” He urged shareholders to engage in the offering, aiming to boost overall shareholder returns and reaffirm First Bank’s status among Nigeria’s top financial institutions.
Group Managing Director Nnamdi Okonkwo indicated that the new capital will primarily be allocated to expanding FirstBank’s wholesale and retail banking services, improving digital banking capabilities, and facilitating growth across Africa. “This rights issue allows shareholders to maintain their stakes while providing essential capital to capitalize on opportunities in our markets,” Okonkwo remarked.
The capital raise, which received unanimous approval from shareholders at the annual general meeting in August 2023, is open to eligible shareholders as of October 18, 2024. Interested parties can find participation forms on the company’s website, at FirstBank branches, and through designated issuing houses. Digital applications are also available via the FirstMobile platform.
FBN Holdings advises shareholders to thoroughly review the rights circular and seek professional advice prior to making any investment decisions.
