FBN Holdings Plc yesterday said it had commenced plans to raise N150 billion from its existing shareholders by way of a rights issue.
The Holdings recently held the signing ceremony to commence the 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 ordinary share held as of October 18, 2024.
A statement from the bank said that the offer was part of the company’s plan to recapitalize its commercial banking subsidiary, First Bank of Nigeria Limited, (FBN) with a view to increasing the bank’s capacity for business development and growth.
In the main, the bank will utilize the fresh capital to extend business to its wholesale and retail business segments as well as 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.
He stated that this will 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. While speaking, at the signing ceremony, the Group Managing Director, Mr. Nnamdi Okonkwo said that 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. FBNHoldings’ shareholders at its 11th Annual General Meeting (AGM), held on August 15, 2023, unanimously supported the Rights Issue.
According to the financial institution, printed copies of the participation form can be downloaded via the company’s website, FirstBank branches and the offices of the Issuing Houses, website of Meristem Registrars during the offer period. The application can also be made via FirstMobile platform.
