In an attempt to raise an extra N150 billion, FBN Holdings Plc has launched a rights issue, issuing 5.983 billion ordinary shares at a price of N25 per share to current shareholders at a price of N50,000 apiece.

As of October 18, shareholders of record are eligible to participate in the offering, which is based on a one-for-six ratio (one new ordinary share for every six shares owned).

The chairman of FBN Holdings, Mr Femi Otedola, emphasised the importance of this capital increase in a statement released in Lagos on Sunday.

Otedola highlighted that the funds will give the bank a robust capital buffer, enabling it to support expansion throughout Africa as well as local growth.

“This initiative is about building a strong foundation for our future, not just about raising money,” he stated.

Our objective is to strengthen our digital and automation skills while providing First Bank of Nigeria Ltd. with the tools it needs to grow in wholesale and retail banking.

Supporting this rights issue directly contributes to the growth and resilience of our business. We have no doubt that this will restore First Bank’s position as the industry leader in the financial sector and increase Total Shareholders’ Return (TSR) in the medium run.

The advantages of the service were also reiterated by Mr. Nnamdi Okonkwo, Group Managing Director of FBN Holdings Plc.

He said that at FBN Holdings’ 11th Annual General Meeting on August 15, 2023, the rights issuance garnered resounding approval from shareholders.

“This rights issue offers our shareholders a special chance to hold onto their equity stake while strengthening the bank’s ability to take advantage of new market opportunities,” Okonkwo stated.

“Our shareholders’ faith in the bank’s strategic vision and our dedication to providing sustainable value are reflected in this endorsement.”

HodCo started trading for N28.75 per share on Monday, according to an analysis of FBNH trading activity on the NGX.

According to PUNCH Online, FBNH has exchanged 463,408 million shares for N13.34 million in 53 trades as of 11:15 a.m.