Home Business A N150 billion rights issue is opened by FBNHoldings

A N150 billion rights issue is opened by FBNHoldings

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A N150 billion rights issue is opened by FBNHoldings
A N150 billion rights issue is opened by FBNHoldings

N150 billion rights issue is opened by FBNHoldings.

In order to bolster its main subsidiary, First Bank of Nigeria Limited, FBN Holdings Plc (FBNH) has launched a significant capital increase through a rights issue, offering roughly 6 billion additional shares.

The Signing Ceremony

A signing ceremony was performed at the company’s headquarters in Marina, Lagos, to formally announce the rights issue, which has a value of over ₦149.6 billion. One new share, valued at ₦25.00 per share, may be subscribed for by current shareholders for every six shares already held.
“The bank will be strengthened for growth and better performance thanks to this capital raise,” FBNH Chairman Femi Otedola stated at the signing ceremony. In order to improve overall shareholder returns and reestablish First Bank as one of Nigeria’s top financial institutions, he encouraged shareholders to take part in the offering.

First Bank Strategy

The new funding would mainly be used to assist FirstBank’s African expansion strategy, improve its digital banking capabilities, and grow the company’s wholesale and retail banking activities, according to Group Managing Director Nnamdi Okonkwo.
“By providing the necessary capital buffers to maximize business opportunities in our operating markets, this rights issue allows shareholders to retain their relative holdings,” Okonkwo said.
As of October 18, 2024, stockholders of record are eligible to participate in the capital increase, which was unanimously approved by shareholders at the company’s annual general meeting in August 2023.

Participation forms are available to current shareholders via the corporate website, FirstBank locations, and approved issuing houses. Through its FirstMobile platform, the business has also made digital apps possible.
Before making any investment decisions, FBN Holdings has recommended shareholders to thoroughly read the rights circular and consult a professional.

Statement Release

This was said in a statement released in Lagos on Sunday by Mr. Femi Otedola, Chairman of FBN Holdings.
According to the statement, the business is giving current shareholders N150 billion in the form of 5.983 billion ordinary shares at a price of N25 per share, or 50k apiece.
One new ordinary share for every six existing ordinary shares as of October 18 is the basis for the offer.
According to Otedola, the action was taken to increase the bank’s ability to grow, develop, and expand its business in both the wholesale and retail sectors.

According to Otedola, the new funding will also support the bank’s aspirations for African expansion as well as its automation and digital banking services.
In order to enhance the business and First Bank and set them up for future growth and better performance, he invited shareholders to support the initiative by asserting their rights.
According to Otedola, this would put the bank back in its proper position among financial institutions and result in a medium-term increase in Total Shareholders’ Return (TSR).
Additionally, Mr. Nnamdi Okonkwo, the Group Managing Director, stated that the rights issue allows shareholders to keep a proportionate ownership in the business while offering the necessary cash buffers to maximize economic business prospects.

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