Recapitalisation: FBN Holdings opens N150 billion Right issue at N25 per share 

FBN Holdings Plc has commenced its Rights Issue, offering 5.983 billion ordinary shares at 50 kobo each, priced at N25 per share, raising N150 billion for existing shareholders.

The offer is structured as one new share for every six ordinary shares held as of October 18.

In a statement issued on Sunday in Lagos, FBN Holdings’ Chairman, Mr. Femi Otedola, explained that the initiative aims to recapitalize its commercial banking arm, First Bank of Nigeria Ltd.

Otedola emphasized that the capital injection will strengthen the bank’s capacity for business growth and expansion across both wholesale and retail markets.

He added that the funds would also support automation, enhance digital banking services, and drive the bank’s African expansion agenda.

Call to shareholders 

Otedola called on shareholders to take up their rights, noting that their participation will strengthen the group and position First Bank for sustained growth and improved performance.

• The Group Managing Director, Mr. Nnamdi Okonkwo, highlighted that the Rights Issue offers shareholders an opportunity to maintain their proportional stake in the company while providing essential capital buffers to capitalize on business opportunities within the economy.

• Okonkwo noted that shareholders unanimously endorsed the Rights Issue during the company’s 11th Annual General Meeting (AGM) held on August 15, 2023.

He said, “Printed copies of the participation form can be downloaded via the company’s website, FirstBank branches and offices of the Issuing Houses. Also, the website of Meristem Registrars during the Offer Period. The application can also be made via FirstMobile platform.” 

 “All the existing shareholders are advised to study the rights circular carefully, and, if in doubt, consult their Stockbrokers and Portfolio Manager.” 

What you should know  

In March 2024, the Central Bank of Nigeria (CBN) announced a new capital requirement for tier-1 banks with international banking licence from N25 billion to N500 billion while that of national banks was put at N200 billion. The apex bank set a timeline of two years (24 months) to meet the new requirement.

• First Bank of Nigeria reportedly has a share capital of N251.3 billion and would require up to N248.7 billion to meet the CBN’s new requirement.
• The N150 billion right issue represents around 60% of the minimum capital required to meet the CBN set target. FBN Holdings Plc currently trades at N28.75k representing a decrease of N3.75k from the current Right Issue price of N25 per share.