First Bank Nigeria Holdings Targets Completion Of N150 Billion Rights Issue By Q1 2025.
First Bank Nigeria Holdings (FBNH) Plc has confirmed progress on its N150 billion rights issue, aiming to finalise the capital raise by the first quarter of 2025. This announcement was made by Group Managing Director Nnamdi Okonkwo during the ‘Facts Behind the Rights Issue’ event at the Nigerian Exchange in Lagos.
Okonkwo explained that the capital raise is a strategic initiative to strengthen FBN Holdings’ financial base, enhance its business capabilities, and expand its market reach. This rights issue commenced on 4 November, offering 5.983 billion ordinary shares at 50 kobo each, priced at N25.00 per share. Eligible shareholders, as of 18 October 2024, can buy one new share for every six they hold, with the offer closing on 12 December 2024.
In addition to this N150 billion rights issue, FBN Holdings plans to seek shareholder approval for an additional N350 billion capital raise at its upcoming Annual General Meeting (AGM). Okonkwo noted that funds from the current rights issue will bolster FirstBank’s capital for business growth, digital banking investments, and international expansion. “This infusion of capital allows us to be more competitive globally and reinforces our commitment to providing innovative, customer-centric services,” he stated.
FBN Holdings aims to further its presence in key African markets, alongside its existing operations in the United Kingdom, France, and China. The capital raised will support the company’s strategy of enhancing its footprint in commercial banking, merchant banking, asset management, and insurance services, leveraging synergies across its subsidiaries for sustainable growth.
Highlighting FBN Holdings’ financial performance for the nine months ending 30 September 2023, Okonkwo shared that gross earnings rose by 134% year-on-year to N2.25 trillion. The company’s profit before tax surged 128% to N610.9 billion, with the cost-to-income ratio improving to 46.4%, aligning with the 2024 financial target of 58%. Total assets grew 62.3% to reach N27.5 trillion.
Okonkwo encouraged shareholders to take advantage of the discounted rights issue price of N25 per share, presenting an attractive investment opportunity relative to current market valuations.
At the presentation, Nigerian Exchange Limited’s Chief Executive Officer, Jude Chiemeka, reaffirmed the Exchange’s support for corporate capital-raising initiatives, noting that it has facilitated N5.7 trillion in fresh capital year-to-date. Chiemeka emphasised the crucial role of the financial services sector within Nigeria’s capital market.
