As a result of the financial services group’s recent robust and remarkable value climb, the market has priced FBN Holdings lower by almost 24%.
Following news of the capital raising, shareholders put intense pressure on the Marina’s large elephant to sell, with many of them taking immediate action.
The management of FBN Holdings Plc notified authorities and the market in its regulatory filing about their intention to raise a significant amount of equity capital to bolster their position in the market.
The financial services firm intends to raise up to N300 billion through rights issues, private placements, or initial public offerings on the Nigerian or global capital markets. The price of these offerings would be decided through a book-building process.
In the tier 1 banking category, the first has become last in audited financial statement release. The market expects the group to release its audited financial statement despite early release of Q4-2024.
Details from the Nigerian Exchange showed that FBN Holdings share price fell to N27.1 at the close of trading sessions on Friday. The group had seen its share peaked at N35.55 in the last seven trading sessions.
The downward trend in its market value mirrors investors’ perception about its future earnings streams, dividend track record competitive position amidst tough rivalry in the banking sector.
