FBN Holdings Plc has announced shareholder approval to raise N150billion through a Rights Issue, offering 5,982,548,799 new Ordinary Shares on a 1-for-6 basis to eligible shareholders listed in the Company’s Register as of October 18, 2024.
The group will today commence a share sale through which it will offer ordinary shares to current shareholders for a chance to invest more and scale up their stakes in the financial services group.
According to the detailed offer prospectus, the transaction allows shareholders with shares in the company as of October 18 ownership of one new share for every six already held at the cost of N25 per unit.
The rights issue will run for a little more than five weeks through December 12, according to the lender.
Commercial banks across Nigeria are in the race to shore up their capital base on the road to meeting the deadline of March 31, 2026 for new minimum capital requirements as set by the Central Bank.
FBN Holdings’ top-tier peers like Access Holdings, GTCO, United Bank for Africa and Zenith, all of which operate internationally and so are expected to ramp up their capital base to at least N500 billion, have completed one form of share sale or the other.
While some accomplished their capital raise only through rights issues, others did through a blend of public offers and selling shares to existing shareholders.
“The primary use of proceeds raised is to enable the company to recapitalize its banking subsidiaries, First Bank of Nigeria Limited, by injecting fresh equity (i.e. Tier 1 Capital) into the banks to shore up their Capital Adequacy Ratios (CAR),” the offer document says.
The bank holding company plans to raise N149.6 billion from the deal, which could take its issued shares to about 41.9 billion.
Greenwich Merchant Bank serves as the leading issuing house for the offer with fifteen others as joint issuing houses.
Investors are to receive their allotment by 27 January 2025 following approval from the Securities and Exchange Commission, while the new shares are planned for listing a week later.
Earlier in the year, FBN Holdings sold its merchant banking unit FBN Quest Merchant Bank to Everquest Acquisition LLP, a group comprising Custodian Investments, Aion Investments, and Evercorp Industries.
Meanwhile, FBN Holdings Plc announced 164.6 percent Interest Income Growth in its Q3 2024 Unaudited Results.
Interest Income grew by 164.64 percent from N617.06 billion to N1.63 trillion. Profit before tax stood at N610.86 billion while Profit after tax stood at N533.88 billion.
Share price currently stands at N27.00k.
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