FBNHoldings opens N150bn Rights Issue

FBN Holdings Plc (FBNH) has initiated a major capital raise through a rights issue, offering nearly 6 billion new shares to strengthen its flagship subsidiary, First Bank of Nigeria Limited.

The rights issue, valued at approximately ₦149.6 billion, was formally launched at a signing ceremony held at the company’s headquarters in Marina, Lagos. Existing shareholders can subscribe to one new share for every six shares held, priced at ₦25.00 per share.

“This capital raise will strengthen the bank for growth and improved performance,” said FBNH Chairman Femi Otedola during the signing ceremony. He urged shareholders to participate in the offering, emphasizing the goal of enhancing total shareholder returns and restoring First Bank’s position among Nigeria’s leading financial institutions.

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According to Group Managing Director Nnamdi Okonkwo, the fresh capital will be primarily directed toward expanding FirstBank’s wholesale and retail banking operations, enhancing its digital banking capabilities, and supporting its African expansion strategy.

“This rights issue gives shareholders the opportunity to maintain their relative holdings while providing necessary capital buffers to maximize business opportunities in our operating markets,” Okonkwo stated.

The capital raise, which received unanimous shareholder approval at the company’s annual general meeting in August 2023, is open to shareholders of record as of October 18, 2024. Existing shareholders can access participation forms through the company’s website, FirstBank branches, and designated issuing houses. The company has also enabled digital applications through its FirstMobile platform.

FBN Holdings has advised shareholders to carefully review the rights circular and seek professional guidance before making investment decisions.