With the staggering economy in Nigeria and stocks experiencing major declines, FBN Holdings Plc, a financial services company, has announced that it will raise new capital subject to approval from shareholders at the group's annual general meeting next month. This information was stated in the notice of the group's 11th annual general meeting, which was distributed to shareholders.
The announcement highlighted FBN's intentions on raising cash through a rights offering. The bank intends to generate cash by issuing 8.974 billion Ordinary shares at 50 kobo each. On Monday, July 26, FBN Holdings shares finished trading at N19.85 on the Nigerian Exchange Limited.
The notice partly reads!
- “That the company’s issued share capital be and is hereby increased from NGN17.95bn made up of 35,895,292,792 ordinary shares of 50 Kobo each to N22.35bn by the creation of 8.973,823,198 ordinary shares of 50 Kobo each.
- “That 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.”
In addition, Samson Ariyibi, who was appointed as the group's executive director of finance, investment, management, and oversight on October 21, 2022, will be submitted to shareholders for approval of his appointment.
Resolutions Awaiting Approval From Shareholders in the Forthcoming AGM
- That the Rights Issue referred to in Resolution may be underwritten on such terms as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities. That the shareholders, under Resolution, will waive their preemptive rights to any unsubscribed shares under the Rights Issue in the event of an under-subscription.