FBN Holdings Launches N150bn Rights Issue To Strengthen First Bank’s Growth Strategy

FBN Holdings Plc. (FBNH) has officially launched a N150 billion Rights Issue, offering 5,982,548,799 ordinary shares of 50 kobo each at N25.00 per share.

This offer, available to existing shareholders on the basis of one new share for every share held as of October 18, 2024, aims to recapitalise FBNH’s flagship subsidiary, First Bank of Nigeria Limited (FirstBank), enhancing its capabilities for future business development and expansion.

The fresh capital raised through the Rights Issue will support FirstBank’s strategic expansion across its Wholesale and Retail business segments. It will also be invested in the enhancement of digital banking and automation efforts and drive African market expansion.

Speaking at the recent signing ceremony held at FBN Holdings’ head office in Lagos, FBNHoldings Chairman, Mr. Femi Otedola, urged shareholders to participate in the Rights Issue, noting that their involvement would strengthen FirstBank’s position in Nigeria’s financial sector and deliver improved Total Shareholders’ Return (TSR) in the medium term.

“The rights issue represents an opportunity for shareholders to reinforce their stake in the company while providing the needed capital buffers to seize growth opportunities in our operating economies,” said Mr. Nnamdi Okonkwo, Group Managing Director (GMD) of FBNHoldings, during the event.

The Rights Issue was unanimously supported by FBNHoldings’ shareholders at its 11th Annual General Meeting (AGM) held on August 15, 2023. Shareholders can access the Participation Form online via the FBNHoldings website, at FirstBank branches, and through the Issuing Houses. For added convenience, applications can also be submitted through the FirstMobile platform.

FBNHoldings encourages existing shareholders to carefully review the Rights Circular and consult with financial advisors if needed before subscribing. This recapitalisation effort marks a strategic step to position FirstBank for sustainable growth and enhanced shareholder value, reinforcing its role in the Nigerian financial services landscape.