First HoldCo’s rights issue oversubscribed by 25%, raising N187.6bn

..Plans N350bn private placement amid shareholder concerns

First HoldCo Plc, formerly known as FBN Holdings, has successfully concluded the first phase of its capital-raising initiative, surpassing its initial target by over 25 per cent. The company aimed to raise N150 billion through a rights issue but secured N187.6 billion, reflecting robust shareholder confidence.

Group Managing Director Adebowale Oyedeji expressed gratitude for the overwhelming support, stating that the capital infusion would bolster the group’s market position, foster innovation, and drive sustainable growth, particularly within its flagship subsidiary, FirstBank.

Following this success, First HoldCo is preparing to embark on the second phase of its capital-raising strategy: a N350 billion private placement. This move has elicited mixed reactions among shareholders. While some view it as a strategic step to attract new investors and strengthen the company’s capital base, others have voiced concerns.

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A faction of shareholders suspects that the private placement could be a tactic by certain individuals, including Chairman Femi Otedola, to increase their stake in the company, potentially sidelining existing shareholders.

In response to these apprehensions, a group of shareholders has called for an Extraordinary General Meeting (EGM) to address the proposed private placement and discuss the current leadership’s direction. They advocate for capital raises to be conducted through rights issues, ensuring all existing shareholders have equitable opportunities to participate.

As First HoldCo advances with its capital augmentation plans, the company emphasizes its commitment to transparency and adherence to regulatory standards. The outcomes of the forthcoming discussions and decisions will significantly influence the group’s strategic trajectory and its relationships with stakeholders.