Yemisi lzuora
Nigeria’s key financial institution FBN Holdings (FBNH) Plc, has expressed confidence that its N150 billion rights issue capital raise would be successfully concluded by first quarter of next year.
Giving update on the exercise the Group Managing Director, of the prominent institution, Nnamdi Okonkwo, said every necessary steps have been taken to ensure a fruitful outcome.
Okonkwo, stated this during the ‘Facts Behind the Rights Issue’ presentation at the Nigerian Exchange in Lagos.
This strategic move signifies FBN Holding’s commitment to fortifying its financial position and capital base, which will in turn enhance its capacity to support various business initiatives and further bolster its market presence.
The FBN Holdings on November 4 commenced its rights issues of 5.983 billion ordinary shares of 50 kobo each at N25.00 per share on the basis of one new ordinary share for every six ordinary shares held as of 18 October 2024. The offer is expected to close on December 12, 2024.
Okonkwo added that FBN Holdings will seek shareholders approval to raise an additional N350 billion at the upcoming Annual General Meeting (AGM).
On the use of the proceeds from the rights issue, Okonkwo noted that it will be used to shore-up FirstBank’s Capital for Business Development & Growth; investment in Automation and Digital Banking; and to support International Business Expansion.
According to him, the bank also plans to deepen its footprint in strategic markets, including key African economies and its existing presence in the United Kingdom, France, and China.
This infusion of capital allows us to be more competitive on a global scale and reinforces our commitment to innovative, customer-centric services, he said.
He highlighted FBN Holdings’ extensive diversification strategy with a focus on enhancing synergies across its subsidiaries and leveraging its stronghold in commercial and merchant banking, asset management, insurance brokerage, and other financial services.
Speaking on the financial and operational highlights of the Company for the nine months ended September 30, 2023, Okonkwo said that gross earnings increased year on year by 134 per cent to N2.25 trillion, driven by impressive growths in both interest and non-interest income.
“Strong earnings drove a 128 per cent year on year growth in profit before tax to N610.9 billion, while CIR improves further to 46.4 per cent, in line with 2024 financial target of <58 per cent. Also, the Company’s total assets grew 62.3 per cent to N27.5 trillion.
He appealed to shareholders to take their rights, saying that the right issue price of N25 per share offers current shareholders a compelling investment opportunity, as the rights issue price is set at a discount to the current market value.
Making remarks during the presentation, Chief Executive Officer, Nigerian Exchange Limited, Mr. Jude Chiemeka said the Exchange remains committed to provide a platform for listed corporates to raise fresh capital, saying that “year-to-date, the Exchange has been able to facilitate N5.7 trillion across different asset classes, stressing that the financial services sector plays an important role in the Nigeria capital market.”