In order to bolster its main subsidiary, First Bank of Nigeria Limited, FBN Holdings Plc (FBNH) has launched a significant capital increase through a rights issue, offering roughly 6 billion additional shares.
A signing ceremony was performed at the company’s headquarters in Marina, Lagos, to formally announce the rights issue, which has a value of over ₦149.6 billion. One new share, valued at ₦25.00 per share, may be subscribed for by current shareholders for every six shares already held.
“The bank will be strengthened for growth and better performance thanks to this capital raise,” FBNH Chairman Femi Otedola stated at the signing ceremony. In order to improve overall shareholder returns and re-establish First Bank as one of Nigeria’s top financial institutions, he encouraged shareholders to take part in the offering.
The new funding would mainly be used to assist FirstBank’s African expansion strategy, improve its digital banking capabilities, and grow the company’s wholesale and retail banking activities, according to Group Managing Director Nnamdi Okonkwo.
“By providing the necessary capital buffers to maximise business opportunities in our operating markets, this rights issue allows shareholders to retain their relative holdings,” Okonkwo said.
As of October 18, 2024, stockholders of record are eligible to participate in the capital increase, which was unanimously approved by shareholders at the company’s annual general meeting in August 2023. Participation forms are available to current shareholders via the corporate website, FirstBank locations, and approved issuing houses. Through its FirstMobile platform, the business has also made digital apps possible.
Before making any investment decisions, FBN Holdings has recommended shareholders to thoroughly read the rights circular and consult a professional.
