The group managing director, FBN Holdings (FBNH) Plc, Nnamdi Okonkwo, revealed that the Group plans to attain a N730 billion capital base by the first quarter of (Q1) 2025.
Okonkwo stressed that the financial institution aimed to exceed the Central Bank of Nigeria’s (CBN) minimum recapitalisation requirement of N500 billion.
Speaking to the capital market community on the Exchange during the Group’s “Facts Behind the Rights Issue” presentation, Okonkwo outlined the Group’s comprehensive strategy, which began with the raising of a N150 billion rights issue exercise on November 4, 2023.
Okonkwo revealed that the Group’s capital base currently at N230 billion will be bolstered through its ongoing Rights Issue and subsequent capital raising strategies which had already been outlined.
“This initial phase is all about securing N150 billion through our rights issue by offering 5.98 billion ordinary shares of 50 kobo each at N25.00 per share to existing shareholders on the basis of one new ordinary share for every six ordinary shares held as at October 18, 2024.
He further added that FBN Holdings will seek shareholder approval to raise an additional N350 billion at the upcoming Annual General Meeting (AGM), ultimately reaching the N730 billion capital target by early 2025, explaining “when we are done, we will be over N230 billion higher than the regulator-stipulated capital.”
Highlighting the use of the proceeds from the rights issue, Okonkwo noted that it will be channelled into strengthening the operations of First Bank, as well as financing digital banking expansion, automation, and investments across its international branches.
“The bank also plans to deepen its footprint in strategic markets, including key African economies and its existing presence in the United Kingdom, France, and China. This infusion of capital allows us to be more competitive on a global scale and reinforces our commitment to innovative, customer-centric services,” Okonkwo noted.
He highlighted FBN Holdings’ extensive diversification strategy with a focus on enhancing synergies across its subsidiaries and leveraging its stronghold in commercial and merchant banking, asset management, insurance brokerage, and other financial services.
Okonkwo addressed the decision to divest from merchant banking through FBN Quest, citing a strategic reorientation that would enable the Group to focus on more profitable, scalable ventures.
According to him, the right issue price of N25 per share offers current shareholders a compelling investment opportunity, as the rights issue price is set at a discount to the current market value.
The chief executive officer, Nigerian Exchange Limited, Jude Chiemeka said the Exchange remains committed to provide a platform for listed corporates to raise fresh capital, saying that “year-to-date, the Exchange has been able to facilitate N5.7 trillion across different asset classes, stressing that the financial services sector plays an important role in the Nigeria capital market.”
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