FBN Holdings Plc, in a notice to the Nigerian Exchange Limited (NGX) for approval, has revised its proposed Rights Issue to 5,982,548,799 ordinary shares of 50 kobo each at N25 per share, as against the previous proposed offer of 8,973,823,198 ordinary shares at N15.50 per share.
The new Rights Issue is structured on the basis of one new ordinary share for every six ordinary shares held, with a qualification date of October 18, 2024.
This comes after the original offer was suspended, reportedly following a court injunction sought by an aggrieved shareholder.
Despite this legal roadblock, FBN Holdings appears to have received the green light to proceed with its strategic plans.
Thus, the company’s Annual General Meeting (AGM) is set for November 14, where the proposed Rights Issue is a key agenda item as indicated in the AGM notice.
At the forthcoming 12th AGM, FBN Holdings will seek shareholders’ approval for a N350 billion capital raise, according to the notice.
The capital raise is expected to strengthen FBN Holdings’ financial position and enable the group to fund strategic growth initiatives across its business units.
The revised Rights Issue is part of FBN Holdings’ long-running efforts to shore up its capital base and position itself for long-term growth.
It will be recalled that in August 2023, FBN Holdings had initially proposed a N150 billion capital raise to improve its balance sheet. Shareholders approved the capital raise in August 2023 alongside the appointment of Femi Otedola as a director.
However, the company later expanded its ambitions, aiming for a N300 billion capital raise by early 2024. This plan was halted in April 2024, when the group cancelled its Extraordinary General Meeting following a court injunction filed by an aggrieved shareholder, which delayed the capital-raising process.
With the AGM set for November 14, 2024, it appears FBN Holdings is ready to move forward, using the AGM as a platform to secure approvals for both the revised Rights Issue and a larger N350 billion capital raise.
According to the notice, the meeting will also discuss the election of new directors, including the formal ratification of Adebowale Oyedeji as Group Managing Director, effective November 13. Mr Oyedeji was recently announced as the new Group Managing Director of the HoldCo taking over from Nnamdi Okonkwo.
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