FBN Holdings Announces N150bn Right Issue After Important Upgrade

• Through a rights offering, First Bank of Nigeria Limited, FBN Holdings Plc has initiated a substantial capital expansion
• Existing shareholders can subscribe to one new share for every six shares held, priced at N25.00 per share
• FBNH Chairman Femi Otedola said the capital raise will strengthen the bank for growth and improved performance

FBN Holdings Plc (FBNH) has started a significant capital raise through a rights issue offering around 6 billion new shares to strengthen First Bank of Nigeria Limited, its flagship company.

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 N149.6 billion.

BuisnessDay reported that one new share, valued at N25.00 per share, may be subscribed for by current shareholders for every six shares already held.

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“This capital raise will strengthen the bank for growth and improved performance,” said FBNH Chairman Femi Otedola during the signing ceremony.

He urged shareholders to participate in the offering, emphasizing the goal of enhancing total shareholder returns and restoring First Bank’s position among Nigeria’s leading financial institutions.

The additional funds will 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.

“This rights issue gives shareholders the opportunity to maintain their relative holdings while providing necessary capital buffers to maximize business opportunities in our operating markets,” Okonkwo stated.

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.

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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.

First Bank announces date for system migration

Legit.ng reported that First Bank, one of Nigeria's leading financial institutions, has announced a scheduled system migration that will temporarily disrupt certain banking services.

In an email targeted at vendors, First Bank said it will transition to a new cloud-based procurement and financial platform from Saturday, October 26.

The bank said the migration will be fully operational from Monday, November 4, 2024, Punch report.

Source: Legit.ng