By Barnabas Esiet.
FBN Holdings Plc has announced a N150 billion rights issue to increase the tier 1 capital of its banking subsidiary, First Bank, and support its digital banking operations and international activities.
The Group Managing Director of FBN Holdings Plc, Nnamdi Okonkwo, disclosed this information at the Company’s Facts Behind the Rights Issue event held at the Nigerian Exchange Limited.
Okonkwo explained that the rights issue is part of the company’s proactive capital plan, which commenced in 2023, ahead of the Central Bank of Nigeria’s recapitalization plan.
“We seek to raise N150 billion via a rights issue. This plan had commenced in 2023 before the recapitalization exercise because we knew our numbers and the firepower we needed,” Okonkwo said.
The rights issue offers shareholders one new ordinary share of 50 kobo for every six ordinary shares held as of October 18, 2024, at a price of N25 per share.
Okonkwo outlined the company’s strategic objectives, which include driving growth through expansion, integration, innovation, and sustainability.
He emphasized the importance of digital infrastructure investments to support digital banking services across the country.
Executive Director Oyewale Ariyibi addressed concerns about the company’s operating performance, citing disciplined capital management and solid earnings growth over the past five years.
The event also saw discussions on the company’s virtual annual general meeting format, with calls for greater participation and engagement.
Nigeria Exchange Limited CEO Jude Chiemeka welcomed the rights issue, highlighting the NGX Invest platform’s role in enabling primary securities issuance and distribution.
FBN Holdings plans to apply for an additional N350 billion capital raising at its next annual general meeting.
The rights issue is a significant step in FBN Holdings’ recapitalization efforts, demonstrating the company’s commitment to meeting the Central Bank of Nigeria’s new capital requirement of N500 billion.
With this development, FBN Holdings reaffirms its position as a leading financial services group in Nigeria, poised for growth and expansion.
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