FBN Holdings offers shareholders N150 billion rights issue

FBN Holdings PlxC has held the signing ceremony to commence the right issue offering of 5,982,548,799 ordinary shares of 50 kobo each at N25 per share to its existing shareholders on the basis of one new ordinary share for every ordinary shares held as of October 18.

The offer is part of the company’s plan to recapitalise its commercial banking subsidiary, First Bank of Nigeria Limited, with a view towards increasing the bank’s capacity for business development and growth.

The bank said it would utilise the fresh capital to extend business to its wholesale and retail business segments, further enhance its automation and digital banking offerings as well as its African expansion plans.

Speaking on the rights issue, the Chairman FBNHoldings, Femi Otedola, encouraged shareholders to support the aspirations of the company by taking up rights thereby strengthening the company and in particular the bank for growth and improved performance that would deliver significantly enhanced total shareholders’ return (TSR) in the medium term and return the bank to its rightful place in the league of Financial Institutions.

While speaking, at the signing ceremony, the Group Managing Director, Nnamdi Okonkwo, said that ‘the rights issue gives the Shareholders the opportunity to retain the relative holding in the company while providing the required capital buffers to maximise business opportunities in the economies where we operate.”