Bank Recapitalisation: FBNHoldings set to raise N150bn with rights issue
One new ordinary share for every six ordinary shares held as at Oct. 18.
FBNHoldings Plc has opened its Rights Issue, offering 5.983 billion ordinary shares at 50k each, priced at N25 per share, totaling N150 billion, to existing shareholders.
This offering is based on one new ordinary share for every six ordinary shares held as at Oct. 18.
The Chairman, FBN Holdings, Mr Femi Otedola, said this in a statement on Sunday in Lagos.
According to Otedola, the offer is part of the company’s plan to recapitalise its commercial banking subsidiary, First Bank of Nigeria Ltd.
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Otedola said the move was aimed at enhancing the bank’s capacity for business development, growth and expansion in both wholesale and retail segments.
Otedola noted that the fresh capital would also boost the bank’s automation and digital banking services and African expansion plans.
He urged shareholders to support the initiative by taking up their rights, saying that such effort would strengthen the company and First Bank, while positioning them for growth and improved performance.
Otedola said that this would deliver significantly enhanced Total Shareholders’ Return (TSR) in the medium term and return the bank to its rightful place in the league of financial institutions.
Also, the Group Managing Director, Mr Nnamdi Okonkwo, said that the rights issue gives the shareholders an opportunity to retain the relative stake in the company, while providing the required capital buffers to maximise business opportunities in the economy.
Okonkwo said that shareholders of the holdings unanimously supported the rights issue at its 11th Annual General Meeting (AGM), held on Aug. 15, 2023.
“Printed copies of the participation form can be downloaded via the company’s website, FirstBank branches and offices of the Issuing Houses. Also, website of Meristem Registrars during the Offer Period. The application can also be made via FirstMobile platform.
“All the existing shareholders are advised to study the rights circular carefully, and, if in doubt, consult their Stockbrokers and Portfolio Manager.
“As well as, solicitor, banker, accountant or any trusted professional adviser for guidance before subscribing to the rights issue,” he said.
