FBN Holdings Plc, one of Africa’s largest financial service groups, is set to raise approximately N150 billion through a Rights Issue.
This offer involves 5,982,548,799 ordinary shares of 50 Kobo each, priced at N25 per share. Existing shareholders are eligible for one new share for every six shares they held as of October 18, 2024. The offer will close on December 12, 2024.
This Rights Issue, tradable from November 4 to December 12, 2024, on the Nigerian Exchange Limited (NGX), allows shareholders to trade directly on the NGX or buy additional shares. Stockbrokers can guide investors in purchasing or trading their rights.
At a recent “Facts Behind the Rights Issue” presentation on the NGX, FBN Holdings’ Group Managing Director, Nnamdi Okonkwo, detailed the strategic vision driving this capital raise.
According to Okonkwo, the Rights Issue reflects robust shareholder support, as demonstrated during the company’s 11th Annual General Meeting in August 2023.
“This Rights Issue offers our shareholders an opportunity to maintain their equity stake while enhancing the bank’s capacity to capture new market opportunities,” Okonkwo stated.
FBN Holdings’ Chairman, Femi Otedola, emphasized that the funds would serve as a strong capital buffer, supporting domestic growth and expansion across Africa.
“This initiative is about laying a solid foundation for our future,” Otedola remarked. “Our goal is to empower First Bank of Nigeria Limited to expand both in wholesale and retail banking while advancing our digital capabilities.
This investment strengthens our resilience and growth, which we believe will boost Total Shareholders’ Return (TSR) and reaffirm First Bank’s leadership.”
FBN Holdings, a diversified financial group, is positioned to become a top banking group in Africa by 2027. Its subsidiaries provide a broad range of services including commercial and merchant banking, capital markets, and insurance brokerage.
As of September 30, 2024, FBN Holdings reported total assets of N27.49 trillion, loans and advances of N12.72 trillion, customer deposits of N21.22 trillion, and shareholders’ funds of N2.60 trillion. The company also achieved gross earnings of N2.25 trillion, with a return on equity (ROE) of 20.27 percent.
Currently ranked as the 15th most valuable stock on the NGX with a market capitalization of N962 billion, FBN Holdings holds approximately 1.64 percent of the equity market share on the Nigerian Exchange.
Analysts at Futureview Research recently highlighted the benefits of the Rights Issue, noting that shareholders who buy rights on the NGX are guaranteed the shares purchased, bypassing the allotment process.
With oversight of subsidiaries such as First Bank of Nigeria Limited, FBN Holdings fosters coordination and innovation across its units, which span commercial and investment banking, trusteeship, and insurance.
Its subsidiary network includes FirstBank UK Limited, FirstBank DRC Limited, FirstBank Ghana Limited, FBNQuest Merchant Bank Limited, and FBN Insurance Brokers Limited, among others.
The Rights Issue is expected to support First Bank’s growth, both in Nigeria and across the continent, while enhancing FBN Holdings’ digital and operational capacities.
