FBNHoldings launches N150bn Rights Issue to boost First Bank’s growth

BY TEMITOPE ADEBAYO

FBN Holdings Plc. (FBNH) officially launched a N150 billion Rights Issue on October 25, 2024, aimed at strengthening its commercial banking arm, First Bank of Nigeria Limited.

The offering, signed at the company’s headquarters at 35 Marina, Lagos, enables existing shareholders to purchase 5,982,548,799 new ordinary shares at N25.00 per share, on the basis of one new share for every six held as of October 18, 2024.

This capital raise is a strategic step to bolster First Bank’s business development efforts, particularly across its Wholesale and Retail banking segments, as well as to support digital transformation and expand African operations.

Chairman of FBNHoldings, Mr. Femi Otedola, called on shareholders to take advantage of the offering, which he believes will enhance the company’s position in the financial sector and deliver long-term shareholder returns.

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“By participating, shareholders can support the bank’s growth and ensure a significant return on investment over the medium term,” Otedola said, emphasizing the strategic benefits of the capital increase.

Group Managing Director of FBNHoldings, Mr. Nnamdi Okonkwo, echoed these sentiments, noting that the Rights Issue offers shareholders a unique opportunity to maintain their stake in the company while reinforcing First Bank’s capital base.

“The additional capital will enable us to pursue growth opportunities across our markets,” Okonkwo added.

Shareholders unanimously approved the Rights Issue at FBNHoldings’ 11th Annual General Meeting in August, underscoring broad support for the initiative. Subscription forms are available on the company’s website, at FirstBank branches, and through Issuing Houses, including Meristem Registrars. Investors can also apply digitally via the FirstMobile app.

Existing shareholders are encouraged to review the Rights Circular and consult financial advisors as needed before making their decisions on the offer.