• Wednesday, November 06, 2024
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Here’s what to know about FBN Holdings, its N150bn rights issue

FBN Holdings’ half-year profit almost doubles to N360bn, highest in 13years

FBN Holdings Plc

FBN Holdings Plc is currently in the stock market shopping for about N150billion through its Rights Issue of 5,982,548,799 ordinary shares of 50 Kobo each at N25 per share.

FBN Holdings is a financial holding company and one of the largest financial services organisations in Africa.

The Rights Issue is available to existing shareholders on the basis of 1 new ordinary share for every 6 existing shares held as at the close of business on Friday, October 18, 2024. The offer is scheduled to close on Thursday, December 12, 2024.

Note that shares that are not subscribed by the date on which the Acceptance Lists close will be allotted on a pro-rata (proportional) basis in line with SEC Rules and Regulations, to shareholders who have applied and paid for additional shares over and above their provisional allotment.

FBNH Holdings Rights will be tradable from November 4, 2024, to December 12, 2024, at the quoted price on the Nigerian Exchange (NGX).

During this period, shareholders can trade their rights directly on the NGX floor. Those who are interested in purchasing traded rights or an existing shareholder looking to trade his/her rights, should contact their stockbrokers for detailed guidance on the procedures for both purchasing and trading FBN Holdings Plc Rights.

Read also: UBA, Oando, Nascon, others drag NGX-ASI down by 0.57%

During the “Facts Behind the Rights Issue” presentation on the Nigeria Exchange Limited (NGX), the executive management team of
FBN Holdings Plc led by Nnamdi Okonkwo, Group Managing Director provided insights into the company’s strategic vision for the future, key business strategies and the anticipated impact of this rights issue on its operations and growth trajectory.

Femi Otedola, chairman, FBN Holdings had in a statement earlier this week highlighted the significance of this capital raise.

Otedola emphasised that the funds would provide the bank with a strong capital buffer, supporting both domestic growth and expansion across Africa.

He said, “This initiative is not only about raising funds but about laying a solid foundation for our future.

“Our goal is to empower First Bank of Nigeria Limited with the resources it needs to expand in both wholesale and retail banking, while also fortifying our digital and automation capabilities.

“Supporting this rights issue is a direct investment in our company’s resilience and growth. We’re confident this will deliver an enhanced Total Shareholders’ Return (TSR) over the medium term and re-establish First Bank’s leadership in the financial sector.”

Similarly, Okonkwo echoed the benefits of the offering, adding that the rights issue received overwhelming shareholder support at FBN Holdings’ 11th Annual General Meeting on August 15, 2023.

Okonkwo said, “This rights issue presents a unique opportunity for our shareholders to maintain their equity stake while bolstering the bank’s capacity to seize new market opportunities.

“This endorsement reflects our shareholders’ trust in the bank’s strategic vision and our commitment to delivering sustainable value.

FBN Holdings is a diversified and leading financial services Group offering a broad range of products and services through its subsidiaries, across commercial banking, merchant banking, capital markets, trusteeship and insurance brokerage to millions of customers.

FBN Holdings Plc is well positioned to become a Top banking group in Africa by 2027, supported by a robust management team.

As of September 30, 2024, its financial highlights include total assets of N27.49 trillion, N12.72 trillion in loans and advances, N21.22 trillion in customer deposits, N2.60 trillion in shareholders’ funds.

FBN Holdings achieved N2.25 trillion in gross earnings with a return on equity (ROE) of 20.27 percent.

“FBN Holdings Plc is currently the 15th most valuable stock on the NGX with a market capitalisation of N962 billion, which is about 1.64 percent of the Nigerian Exchange – equity market”, Futureview Research analysts said in their recent note to investors.

“Shareholders who buy rights on the NGX are guaranteed the number of shares purchased: they will not be subject to the allotment process in respect of shares so purchased.

“This trading period offers a prime opportunity for public investors to subscribe to the Offer and for existing shareholders to trade their rights at a premium,” the analysts further noted.

FBN Holdings has oversight over its subsidiaries and drives group coordination, collaboration and synergies among other principal activities towards innovative financial solutions and enhanced shareholder value.

FBN Holdings Plc is the non-operating holding company of First Bank of Nigeria Limited, a commercial bank with operations in 10 countries.

FBN Holdings has six direct subsidiaries, namely: First Bank of Nigeria Limited; FBNQuest Merchant Bank Limited; FBNQuest Capital Limited; FBNQuest Trustees Limited; FBN Insurance Brokers Limited; and New Villa Limited (Rainbow Town Development Limited).

FBN Holdings also has fifteen indirect subsidiaries namely: FirstBank UK Limited, FirstBank DRC Limited, FirstBank Guinea Limited, FirstBank Gambia Limited, FirstBank Sierra Leone Limited, FBNBank Senegal Limited, FBNBank Ghana Limited, FirstPension Custodian Nigeria Limited, First Nominees Nigeria Limited, FBNQuest Asset Management Limited, FBNQuest Securities Limited, FBNQuest Funds Limited, FBNQuest Capital Partners Limited, FBNQuest Property Ventures Limited and FBN Ivory Nigeria Limited.

Iheanyi Nwachukwu, is a creative content writer with over 18 years journalism experience writing on banking, finance and capital markets. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).

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