When shareholders of FBN Holdings Plc meet virtually on April 30, the Board will be seeking their approval to raise about N300billion in new capital.
The capital raise transaction will be by Issuance of shares via a public offering, private placement, rights issue in the Nigerian or international capital markets.
This is contained in a recent regulatory notice on the extraordinary general meeting (EGM) of the financial holding company which owns First Bank, one of Nigeria’s top tier lenders.
Investors interest in Nigeria’s banking stocks have driven the counters prices higher after the Central Bank of Nigeria (CBN) announced decision to raise the minimum capital requirements for banks in Nigeria.
Read also: Stock market gains N165bn as investors buy BUA Cement, FBN Holdings, others
At N30.50 per share, FBN Holdings Plc traded last Friday on the Nigerian bourse, its value has risen this year by 29.5percent. It had reached a 52-week high of N43.95 per share and a corresponding 52-week low of N10.30.
The First Bank of Nigeria (FBN) Holdings recently appointed Femi Otedola, the billionaire businessman and investor, as the new chairman of its board of directors. Otedola is a dyed-in-wool and visionary entrepreneur whose energy is directed at transforming enterprises and putting them on the path of growth.
The Central Bank of Nigeria has recently asked commercial banks with international authorisation to maintain a minimum capital of N500 billion, while national and regional commercial banks are mandated to hold N200 billion and N50 billion capital bases, respectively.
Also, merchant banks are to have minimum capital of N50 billion, and national and regional non-interest banks are to have N20 billion and N10 billion, respectively. A timeline of 24 months has been stipulated for banks to adhere to the new requirements, commencing on April 1, 2024, and concluding on March 31, 2026.
