Rights Issue: FBNH applies to NGX seeking approval to list 8.97 billion units of shares @N15.5/Share

FBNH has applied to the Nigerian Exchange Limited for the approval and listing of the rights issue of 8.97 billion units of ordinary shares at N15.50/share. 

According to a reliable source who has knowledge of the application, the right issue is based on one share to every four shares held by existing shareholders.  

Shareholders of First Bank Holding Plc, one of the nation’s premier commercial banks, had approved the holding company to raise N150 billion in additional capital for future expansion.  

The approval which was given at the group’s Annual General Meeting (AGM) held virtually in Lagos also saw the ratification of the appointment of a Billionaire investor, Mr. Femi Otedola as Non-Executive Director among other resolutions.  

Otedola was listed as a substantial shareholder with 5.57% of the total shareholdings, translating to 10,000,000 units of shares directly held and 1,989,342,376 units of shares held indirectly under Calvados Global Limited as of June 30, 2023.  

CityNews Nigeria reported that according to the resolution passed by the shareholders, the capital raise transaction shall be by way of a Rights Issue, on such terms and conditions and on such dates as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.  

FBN Holding currently trades at N16.6 per share after hitting a multi-year high of N23.5 per share in July 2023. At the current price, the proposed right issue will be trading at a discount of 6.6%. 

This is a developing story….