FBN Holdings Plc has announced a revised plan for its proposed Rights Issue, increasing the capital raise to N350 billion at N25 per share. This new offer involves 5,982,548,799 ordinary shares of 50 kobo each, structured on a one for six basis, meaning shareholders will be eligible to purchase one new share for every six ordinary shares they hold, with the qualification date set for October 18, 2024. This marks a significant revision from the earlier proposal of 8,973,823,198 shares at N15.50 per share.
The revision comes after the original offer was suspended following a court injunction sought by an aggrieved shareholder. Despite this legal challenge, FBN Holdings appears to have overcome the obstacles and is now ready to proceed with its strategic capital raising plans. The upcoming Annual General Meeting (AGM), scheduled for November 14, 2024, will be a crucial moment for the company as it seeks shareholders' approval for the N350 billion capital raise, which is a key agenda item.
This revised Rights Issue is part of FBN Holdings' ongoing efforts to bolster its capital base and position the company for future growth. The raised funds will strengthen the financial stability of the group and enable it to pursue strategic initiatives across its various business units. The capital raise also aligns with the company's broader goal of ensuring long-term financial health and competitiveness within Nigeria’s banking sector.
In August 2023, FBN Holdings initially proposed a N150 billion capital raise, which was approved by shareholders alongside the appointment of prominent businessman Femi Otedola as a director. However, the company later revised its ambition, setting a new target of N300 billion by early 2024. This plan hit a roadblock in April 2024 when a court injunction led to the cancellation of an Extraordinary General Meeting (EGM), delaying the capital raise.
Now, with the AGM around the corner, FBN Holdings seems set to move forward. The meeting will provide a platform for securing the necessary approvals for the revised Rights Issue and the larger N350 billion capital raise.
In addition to the capital raise, the AGM will also address key leadership changes within the company. Shareholders will discuss the election of new directors, including the formal ratification of Adebowale Oyedeji as Group Managing Director, effective November 13, 2024. Oyedeji will succeed Nnamdi Okonkwo, who is stepping down from the role.
FBN Holdings’ revised Rights Issue signals the company’s commitment to strengthening its financial foundation and driving future growth. By increasing the capital raise to N350 billion, FBN Holdings is positioning itself to take advantage of new opportunities in the banking sector, while ensuring it remains competitive in a challenging economic environment. The upcoming AGM will be a critical moment for the company as it seeks shareholders’ support to move forward with its strategic plans.