FBN Holdings’ share price rose by 1.65% on the Nigerian Exchange Limited (NGX) on Wednesday, closing at N27.65 its highest in a week. This increase coincides with the bank’s opening of a rights issue to raise N150 billion, offering 5.98 billion shares to existing shareholders at N25 per share, a discount from the current market value. FBN joins GTCO, Access Holdings, and Zenith Bank in raising funds to meet the Central Bank of Nigeria’s updated capital requirements for banks.
Group Managing Director Nnamdi Okonkwo highlighted that the capital raise had been in the planning stages since last year, before the Central Bank’s new N500 billion capital mandate. He reassured investors that FBN Holdings would reach this target gradually, starting with the current N150 billion and aiming to raise an additional N350 billion at the next Annual General Meeting. The rights issue is open until December 12, allowing shareholders to purchase shares at a favorable rate to support the bank’s expansion and compliance with regulatory expectations.
The bank also emphasized the importance of the NGX Invest platform, which facilitates easier access to a broader investor base. Through NGX Invest, FBN and other banks have collectively raised significant capital for the financial sector. NGX CEO Jude Chiemeka commended the sector’s role in economic development, noting that the exchange facilitated over N5.7 trillion in various capital raises this year, with technology like NGX Invest playing a key role in supporting Nigeria’s banking industry.
