FBN Holdings Plc, a Nigerian financial services group, has applied for approval from the Nigerian Exchange Limited (NGX) to raise ₦139 billion in additional capital through a Rights Issue. The proposal involves issuing approximately 8.97 billion ordinary shares at ₦15.50 per share, following a ratio of one new share for every four held by existing shareholders as of October 9, 2023. FBNQuest Securities, the company’s stockbrokers, submitted the application on its behalf.
Key Points:
- FBN Holdings aims to raise ₦139 billion through a Rights Issue for future expansion projects, subject to regulatory approvals.
- The proposal involves the issuance of 8.97 billion ordinary shares at ₦15.50 per share, based on a one-for-four ratio for existing shareholders.
- Shareholders supported the capital increase at the 11th annual general meeting, with 98.76% in favor of raising the company’s issued share capital.
Analysis: FBN Holdings’ move to raise additional capital through a Rights Issue indicates a strategic effort to bolster its financial position for future growth and expansion projects. The overwhelming support from shareholders underscores their confidence in the company’s prospects. This capital infusion will provide FBN Holdings with increased financial flexibility to pursue strategic initiatives in a dynamic and competitive market environment. The success of this Rights Issue will likely play a crucial role in shaping the company’s trajectory in the coming years.
