FBN Holdings leverages NGX Invest for N150bn Rights Issue

FBN Holdings Plc’s N150 billion rights issue has gone live on the Nigerian Exchange Group’s (NGX) digital platform, NGX Invest.

This rights issue, offered on a one-for-six basis to existing shareholders, is accessible through NGX Invest, providing a seamless digital channel for eligible investors to participate.

By utilising NGX Invest, FBN Holdings joins six other Nigerian banks that have recently tapped into this innovative platform to distribute a total of eight public offers and rights issues.

This move aligns with the Central Bank of Nigeria’s (CBN) new capital adequacy requirements, which mandate banks to strengthen their capital bases by 2026.

Read also: Here’s what to know about FBN Holdings, its N150bn rights issue

To date, NGX Invest has facilitated approximately N1.26 trillion (about $770 million) in capital raises within the banking sector.

At the “Facts Behind the Rights Issue” event held at the Exchange, Nnamdi Okonkwo, Managing Director, FBN Holdings Group emphasised the strategic importance of the rights issue, stating, “We will be leveraging our diversified portfolio of businesses and shared resources to ‘do more with less’, optimizing costs, improving efficiency, and boosting revenues. We aim to strategically expand into new geographies via both physical and digital approaches while continuing to explore attractive business adjacencies.”

He also noted FBN Holdings’ enthusiasm in utilising NGX Invest’s capabilities, highlighting that “this digital platform allows us to reach a wider investor base and facilitate seamless participation in our capital raise.”

NGX Invest’s track record in facilitating capital raises has attracted praise from stakeholders. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), noted that banks using NGX Invest have consistently achieved full subscription levels, often reaching oversubscription. Similarly, Ladi Balogun, Group Chief Executive Officer of FCMB Group Plc, commended NGX Group for its pivotal role in enabling over 40,000 investors to seamlessly participate in their recent public offering through the NGX Invest platform.

Temi Popoola, Group Chief Executive Officer of NGX Group, highlighted the platform’s significance, saying, “NGX Invest’s secure and well-regulated infrastructure has rapidly emerged as the top choice for issuers seeking to distribute their offerings digitally. We are proud to support financial institutions and other issuers in their capital-raising efforts, empowering them to reach a wider investor base and drive economic growth.”