Bank Recapitalisation: FBNHoldings Opens N150bn Rights Issue

FBN Holdings Plc. (FBNH) has announced the signing ceremony to commence the Rights Issue offering of 5,982,548,799 ordinary shares of 50 kobo each at N25.00 per share to its existing shareholder on the basis of one new ordinary share for every ordinary shares held as at  October 18, 2024.

The offer is part of the Company’s plan  to recapitalise its commercial banking subsidiary, First Bank of Nigeria Limited, (Firstbank) with a view towards increasing the bank’s capacity for business development and growth.

In the main, the bank said it will utilise the fresh capital to extend business to its Wholesale and Retail business segments; further enhance its  automation and digital banking offerings as well as its African expansion plans.

Speaking on the Rights Issue, at the signing ceremony held in its head office in Lagos, on Friday, the chairman FBNHoldings, Femi Otedola, encouraged shareholders to support the aspirations of the company by taking up  rights thereby strengthening the company and in particular the bank for growth and improved performance that will deliver significantly enhanced Total Shareholders’ Return (TSR) in the medium term and return the bank to its rightful place in the league of Financial Institutions.

Speaking, at the signing ceremony, the group managing Director,  Nnamdi Okonkwo said that ‘the rights issue gives the Shareholders the opportunity to retain the relative holding in the company while providing the required Capital buffers to maximise business opportunities in the economies where we operate.

FBNHoldings’ shareholders at its 11th Annual General Meeting (AGM), held on August 15, 2023,  unanimously supported the Rights Issue.

Printed copies of the Participation Form can be downloaded via the company’s website, FirstBank branches and the offices of the Issuing Houses, website of Meristem Registrars during the Offer Period. The application can also be made via the FirstMobile platform.

All the existing shareholders are advised to study the Rights Circular carefully,  and, if in doubt, consult their  Stockbrokers, Portfolio Manager, Solicitor, Banker, Accountant or any trusted professional adviser for guidance before subscribing to the Rights Issue.