FBNHoldings Launches N150bn Rights Issue to Strengthen First Bank
Detailed Breakdown:
FBN Holdings Plc (FBNH) has officially launched a rights issue valued at nearly ₦150 billion to support its flagship subsidiary, First Bank of Nigeria Limited. The new capital injection aims to bolster the bank’s growth, expand its market presence, and improve shareholder returns.
Key Details:
• Rights Issue Value and Shares: The rights issue is valued at approximately ₦149.6 billion, offering nearly 6 billion new shares.
• Subscription Terms: Existing shareholders are entitled to subscribe to one new share for every six shares they hold, at ₦25.00 per share.
• Leadership’s Encouragement: FBNH Chairman Femi Otedola urged shareholders to participate, emphasizing that the capital will support First Bank’s growth and position it among Nigeria’s top financial institutions.
Purpose and Usage:
Group Managing Director Nnamdi Okonkwo shared that the capital raise would focus on:
• Expanding wholesale and retail banking operations
• Enhancing digital banking capabilities
• Supporting the bank’s African expansion strategy
Okonkwo noted that this initiative allows shareholders to retain their stake proportionally while enabling the bank to capitalize on growth opportunities.
Shareholder Access:
The rights issue, approved at the company’s 2023 AGM, is open to shareholders recorded as of October 18, 2024. Participation forms are available on FBNH’s website, FirstBank branches, and designated issuing houses. Additionally, digital applications can be submitted via FirstMobile.
Advisory Note:
FBN Holdings has advised shareholders to review the rights circular thoroughly and seek professional guidance before deciding on their investment.
Detailed Breakdown:
FBN Holdings Plc (FBNH) has officially launched a rights issue valued at nearly ₦150 billion to support its flagship subsidiary, First Bank of Nigeria Limited. The new capital injection aims to bolster the bank’s growth, expand its market presence, and improve shareholder returns.
Key Details:
• Rights Issue Value and Shares: The rights issue is valued at approximately ₦149.6 billion, offering nearly 6 billion new shares.
• Subscription Terms: Existing shareholders are entitled to subscribe to one new share for every six shares they hold, at ₦25.00 per share.
• Leadership’s Encouragement: FBNH Chairman Femi Otedola urged shareholders to participate, emphasizing that the capital will support First Bank’s growth and position it among Nigeria’s top financial institutions.
Purpose and Usage:
Group Managing Director Nnamdi Okonkwo shared that the capital raise would focus on:
• Expanding wholesale and retail banking operations
• Enhancing digital banking capabilities
• Supporting the bank’s African expansion strategy
Okonkwo noted that this initiative allows shareholders to retain their stake proportionally while enabling the bank to capitalize on growth opportunities.
Shareholder Access:
The rights issue, approved at the company’s 2023 AGM, is open to shareholders recorded as of October 18, 2024. Participation forms are available on FBNH’s website, FirstBank branches, and designated issuing houses. Additionally, digital applications can be submitted via FirstMobile.
Advisory Note:
FBN Holdings has advised shareholders to review the rights circular thoroughly and seek professional guidance before deciding on their investment.