FBN Holdings Plc has officially launched its Rights Issue, offering approximately 5.983 billion ordinary shares priced at N25 each, aiming to raise N150 billion for its existing shareholders.
This offer is structured as one new share for every six shares held by shareholders as of October 18, 2024.
In a recent statement, FBN Holdings’ Chairman, Mr. Femi Otedola, detailed that the capital raised will primarily serve to recapitalize the commercial banking sector, particularly First Bank of Nigeria Ltd.
Otedola emphasised that this capital infusion is crucial for enhancing the bank’s capacity for growth in both wholesale and retail markets. He stated, “This is not just about raising funds; it’s about positioning First Bank for sustainable growth and improved performance.”
Otedola further elaborated that the funds would support advancements in automation, enhance digital banking services, and contribute to the bank’s strategic agenda for expansion across Africa.
He urged existing shareholders to exercise their rights, asserting that their participation would fortify the group and lay a robust foundation for future growth. “The collective effort of our shareholders is paramount in ensuring First Bank’s resilience in a competitive landscape,” he added.
Group Managing Director, Mr. Nnamdi Okonkwo, reinforced the importance of the Rights Issue, explaining that it provides shareholders the opportunity to maintain their proportional ownership in the company while injecting essential capital to seize upcoming business opportunities.
“This Rights Issue is a strategic move to strengthen our capital buffers, enabling us to navigate economic challenges effectively,” Okonkwo noted.
During the company’s 11th Annual General Meeting (AGM) on August 15, 2023, shareholders unanimously endorsed the Rights Issue, reflecting their confidence in the bank’s future prospects.
Okonkwo mentioned that printed copies of the participation form can be downloaded from the company’s website or obtained from First Bank branches and Issuing Houses, as well as via the FirstMobile platform