Get Guardian on GoogleFBNHoldings Plc has opened its Rights Issue, offering 5.983 billion ordinary shares at 50 kobo each, priced at N25 per share, totaling N150 billion to existing shareholders.
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This offering is based on one new ordinary share for every six ordinary shares held as of Oct. 18.
The Chairman of FBN Holdings, Mr. Femi Otedola, made this announcement in a statement on Sunday in Lagos.
According to Otedola, the offer is part of the company’s plan to recapitalise its commercial banking subsidiary, First Bank of Nigeria Ltd.
Otedola stated that the move aims to enhance the bank’s capacity for business development, growth, and expansion in both wholesale and retail segments.
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He noted that the fresh capital would also boost the bank’s automation and digital banking services, as well as its African expansion plans.
Otedola urged shareholders to support the initiative by taking up their rights, emphasizing that such efforts would strengthen both the company and First Bank, positioning them for growth and improved performance.
He asserted that this initiative would deliver significantly enhanced Total Shareholders’ Return (TSR) in the medium term and return the bank to its rightful place among financial institutions.
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Additionally, the Group Managing Director, Mr. Nnamdi Okonkwo, remarked that the rights issue provides shareholders an opportunity to retain their relative stake in the company while providing the necessary capital buffers to maximize business opportunities in the economy
Okonkwo noted that shareholders of the holdings unanimously supported the rights issue at its 11th Annual General Meeting (AGM), held on Aug. 15, 2023.
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“Printed copies of the participation form can be downloaded via the company’s website, First Bank branches, and the offices of the Issuing Houses. Applications can also be made through the FirstMobile platform.
“All existing shareholders are advised to study the rights circular carefully, and if in doubt, consult their stockbrokers, portfolio managers, solicitors, bankers, accountants, or any trusted professional adviser for guidance before subscribing to the rights issue,” he added.
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