FBN Holdings Plc (FBNH) has opened a rights issue, offering nearly 6 billion new shares to existing shareholders at a price of N25 per share.
The rights issue aims to raise N150 billion to bolster the company’s capital reserves and strengthen First Bank of Nigeria Ltd, its commercial banking subsidiary.
Announced on Sunday by FBN Holdings Chairman, Mr. Femi Otedola, the rights issue is structured on the basis of one new share for every six ordinary shares held as of October 18. This move comes as FBN Holdings’ share price rallied to N28.75 on Friday, following a period of underperformance earlier in the year.
According to Otedola, the capital raise is geared toward First Bank’s growth across retail and wholesale banking segments, while also enhancing its digital banking capabilities and African expansion plans. He urged shareholders to support the initiative, highlighting that increased capital would position the bank for improved business opportunities, financial performance, and a stronger market presence.
Group Managing Director, Mr. Nnamdi Okonkwo, further emphasised the strategic importance of the rights issue, describing it as an opportunity for shareholders to maintain their relative ownership while helping to fund business expansion. At the company’s Annual General Meeting in August, shareholders unanimously endorsed the rights issue, which, Okonkwo stated, would provide crucial capital buffers for maximising growth opportunities.
FBN Holdings’ rights issue represents a significant step in the company’s strategy to reclaim a leading position in Nigeria’s financial sector, with a focus on delivering enhanced returns to shareholders in the medium term.
