FBNHoldings Moves To Recapitalise First Bank With N150bn Rights Issue

FBN Holdings Plc the parent company of First Bank Nigeria Limited has announced the  Rights Issue offering of 5,982,548,799 ordinary shares of 50 kobo each at N25.00 per share to its existing shareholders on the basis of one (1) new ordinary share for every (6) ordinary shares.

The signing ceremony for the rights Issue offer was done at the weekend in Lagos, Nigeria’s commercial capital, in compliance with the Central Bank of Nigeria’s, CBN, directive to commercial banks and Deposit Money Banks, DMBs, in the country to recapitalise before 31 March 2026.

According to the holding company, in a statement, the Offer is part of the Company’s plan to recapitalize its commercial banking subsidiary, First Bank of Nigeria Limited, (“Firstbank” or “the bank”) with a view towards increasing the bank’s capacity for business development and growth.

Instructively, the company said,  the bank will utilise the fresh capital to extend business to its Wholesale and Retail business segments; further enhance its automation and digital banking offerings as well as its African expansion plans.

Speaking on the Rights Issue, the Chairman FBNHoldings,  Femi Otedola, encouraged shareholders to support the aspirations of the company by taking up rights thereby strengthening the company and in particular the bank for growth and improved performance that will deliver significantly enhanced Total Shareholders’ Return (TSR) in the medium term and return the bank to its rightful place in the league of Financial Institutions.

Also speaking during the ceremony, the Group Managing Director, GMD, Nnamdi Okonkwo said that ‘the rights issue gives the Shareholders the opportunity to retain the relative holding in the company while providing the required Capital buffers to maximize business opportunities in the economies where we operate.

The financial giant further stated that its shareholders had at its 11th Annual General Meeting, AGM, held on August 15, 2023, unanimously supported the Rights Issue.

Printed copies of the Participation Form can be downloaded via the company’s website, FirstBank branches and the offices of the Issuing Houses, 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, Portfolio Manager, Solicitor, Banker, Accountant or any trusted professional adviser for guidance before subscribing to the Rights Issue