FBN Holdings Plc has announced a N150 billion rights issue to support its re-capitalization, infrastructure upgrade and expansion plans..
Group Managing Director of FBN Holdings Plc, Nnamdi Okonkwo, disclosed this at the Company’s Facts Behind the Rights Issue ceremony held Wednesday, on the Lagos floor of the Nigerian Exchange Group (NGX).
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 re-capitalization directive, noting that it is intended to increase the tier 1 capital of its banking subsidiary, First Bank, and support its digital banking operations and international activities
“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 stated.
The rights issue offers shareholders one new ordinary share of 50 kobo each for every six ordinary shares held as of October 18, 2024, at a market price of N25 per share
Okonkwo emphasized the importance of digital infrastructure investments to support digital banking services across the country, insisting that it was part of the company’s strategic objectives to drive growth through expansion, integration, innovation, and sustainability.
FBN Holdings also plans to raise additional N350 billion capital by 2025, Okonkwo revealed, adding tha the issue will deliberated at its next annual general meeting.
The rights issue is a significant step in FBN Holdings’ re-capitalization efforts, demonstrating the company’s resolve to meet the Central Bank of Nigeria’s new capital requirement of N500 billion.
With this development, FBN Holdings has reaffirmed its position as a leading financial services group in Nigeria, with a strong growth and expansion plan.
Meanwhile, Executive Director Oyewale Ariyibi while addressing concerns about the company’s operating performance, explained that the Holdco’s guiding principle has always been one of disciplined capital management and solid earnings growth over the past five years.
He also addressed concerns about its virtual Annual General Meeting (AGM), the company insisting that the move was geared towards ensuring wider shareholders participation and engagement.
In an address of welcome,CEO,Nigeria Exchange Limited Jude Chiemeka who praised FBNH’s efforts and choice of market instrument, emphasized the NGX Invest platform’s role in enabling primary securities issuance and distribution.