FBN Holdings Plc (FBNH) has introduced a substantial capital increase through a rights issuance, offering approximately 6 billion new shares to fortify its principal subsidiary, First Bank of Nigeria Limited.
The rights issuance, valued at approximately ₦149.6 billion, was formally announced during a signing ceremony held at the company's headquarters in Marina, Lagos. Existing shareholders are eligible to subscribe to one new share for every six shares they currently possess, with each share priced at ₦25.00.
FBNH Chairman Femi Otedola remarked during the ceremony, "This capital raise will fortify the bank for growth and enhanced performance." He encouraged shareholders to engage in the offering, highlighting the objective of improving total shareholder returns and reinstating First Bank’s status among Nigeria’s top financial institutions.
Group Managing Director Nnamdi Okonkwo noted that the new capital will primarily focus on expanding FirstBank’s wholesale and retail banking services, improving its digital banking infrastructure, and supporting its growth strategy across Africa.
"This rights issue provides shareholders the chance to maintain their proportional holdings while creating essential capital reserves to seize business opportunities in our markets," Okonkwo explained.
Shareholders unanimously approved the capital raise at the annual general meeting held in August 2023. Shareholders registered as of October 18, 2024, are eligible to participate. Participation forms can be obtained through the company's website, FirstBank branches, designated issuing houses, or via the FirstMobile platform.
FBN Holdings advises shareholders to carefully review the rights circular and consult professional advisors before making investment decisions.