FBN Holdings Initiates Major Capital Raise Through Rights Issue to Bolster First Bank of Nigeria
FBN Holdings Plc (FBNH) has launched a significant capital raise, offering nearly six billion new shares in a rights issue aimed at strengthening its flagship subsidiary, First Bank of Nigeria Limited. Valued at around ₦149.6 billion, the rights issue allows existing shareholders to subscribe to one new share for every six shares they currently hold, priced at ₦25.00 per share. The formal launch took place at FBNH’s headquarters in Marina, Lagos, signaling a strategic move toward expanding the bank’s reach and fortifying its market position.
During the signing ceremony, FBNH Chairman Femi Otedola encouraged shareholders to participate, highlighting the objective of enhancing shareholder returns and reinforcing First Bank’s status as one of Nigeria’s top financial institutions. “This capital raise will strengthen the bank for growth and improved performance,” Otedola stated, underscoring the initiative’s focus on long-term value creation.
Nnamdi Okonkwo, the Group Managing Director of FBN Holdings, outlined plans for the capital infusion. Key priorities include bolstering FirstBank’s wholesale and retail banking operations, advancing its digital banking capabilities, and supporting its ongoing African expansion. “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 said.
Approved unanimously by shareholders at FBNH’s annual general meeting in August 2023, the rights issue is open to shareholders on record as of October 18, 2024. Participation forms are available on the company’s website, at FirstBank branches, and through designated issuing houses, with digital applications also facilitated via the FirstMobile platform.
This capital raise marks a strategic investment in First Bank’s growth, aiming to support expansion efforts and drive operational excellence across its regional markets.
