FBN Holdings to raise N139bn by Rights Issue

FBN Holdings Plc has sought the approval of the Nigerian Exchange Limited to raise N139bn in additional capital through a Rights Issue.

This was revealed in a notice to Trading License Holders by the NGX Regulations on Monday, where it said its Stockbrokers, FBNQuest Securities, sought approval on behalf of the lender.

Part of the notice said, “Its stockbrokers, FBNQuest Securities Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a Rights Issue of Eight Billion, Nine Hundred and Seventy-Three Million, Eight Hundred and Twenty-Three Thousand, One Hundred and Ninety-Eight (8,973,823,198) ordinary shares of 50 kobo each at N15.50 per Share on the basis of one new ordinary share for every four ordinary shares held as at the close of business on Monday, 9 October 2023.”

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A notice of its 11th annual general meeting issued to shareholders back in July revealed plans to raise capital by way of a rights issue for future expansion projects.

The AGM notice said, “There shall be a capital raise. The capital raise transaction shall be by way rights issue, on such terms and conditions and on such dates as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.”

At its AGM, 98.76 per cent of the shareholders with voting rights voted in support of increasing the company’s issued share capital from N17.95bn of 35, 895,292,792 ordinary shares to N22.43bn by the creation of 8.973,823,198 ordinary shares of 50 Kobo each. Only 1.24 per cent voted against the resolution.

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