FBN Holdings Plc has started a rights issue to try to get an extra N150 billion in capital. They are giving away 5.983 billion ordinary shares at N25 each, worth 50k each, to current shareholders.
This offer is open to shareholders who owned shares as of October 18 and is based on a one-for-six ratio, which means that for every six shares kept, one new ordinary share will be given away.
In a statement released in Lagos on Sunday, Mr. Femi Otedola, Chairman of FBN Holdings, talked about how important this capital raise was.
Otedola stressed that the money would give the bank a strong cash cushion, which would help with growth both in Nigeria and across Africa.
He said, “This project isn’t just about getting money; it’s also about building a strong base for our future.”
“Our goal is to give First Bank of Nigeria Ltd. the tools it needs to grow in both wholesale and retail banking, as well as to improve our digital and automated services.”
“Supporting this rights issue is an investment in the growth and strength of our company.” We’re sure that this will improve the Total Shareholders’ Return (TSR) over the next few years and put First Bank back at the top of the banking sector.
In the same way, Mr. Nnamdi Okonkwo, Group Managing Director of FBN Holdings Plc, talked about the perks of the offering.
He also said that the rights issue got a lot of support from shareholders at FBN Holdings’ 11th Annual General Meeting on August 15, 2023.
Okonkwo said, “This rights issue gives our shareholders a one-of-a-kind chance to keep their equity stake while also making the bank better able to take advantage of new market opportunities.”
“This endorsement shows that our shareholders believe in the bank’s long-term goals and our dedication to creating long-term value.”
Looking back at the FBNH trades that happened on the NGX on Monday, we can see that HodCo started trading at N28.75 per share.
Newsline found that FBNH had exchanged 463,408 million shares worth N13.34 million in 53 deals as of 11:15 a.m.
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