Trading in Rights Issue of 5,982,548,799 Ordinary Shares of 50 Kobo each at ₦25.00 per share in FBN Holdings PLC has opened today. The rights Issue is expected to raise N150 billion.
The primary use of proceeds raised is to enable the company recapitalize its banking subsidiaries, First Bank of Nigeria Limited by injecting fresh equity (i.e. Tier 1 Capital) into the banks to shore up their Capital Adequacy Ratios (CAR).
Lending to Corporate Business Segment and Retail Business Segment is expected to gulp 68.95% of the Issue, Support International business expansion 19.70%, Investment in automation and digital banking 9.85%, and Cost of Issuance 1.50%.
On completion of the Rights Issue, assuming all provisionally allotted Ordinary Shares are fully taken up, the Company will have a market capitalization of N1.047 trillion.
The Rights will be allotted on the basis of 1 new Ordinary Share for every 6 Ordinary Shares held as at the close of business on 18 OCTOBER, 2024.
FBNH has six direct subsidiaries, namely: First Bank of Nigeria Limited; FBNQuest Merchant Bank Limited; FBNQuest Capital Limited; FBNQuest Trustees Limited; FBN Insurance Brokers Limited; New Villa Limited (Rainbow Town Development Limited); and fifteen indirect subsidiaries.
“By supporting the Rights Issue through accepting your rights, the Company will be well positioned to achieve its strategic objectives and to deliver improved returned to all stakeholders, going forward. I therefore enjoin you to carefully consider this investment opportunity and take up your rights, in full, as the Company continues to harness imminent opportunities and deliver on its promises,” Olufemi Otedola, CON, Chairman of FBN Holdings said.
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Dropped waivers.