Nigeria: FBN Holdings Set to Raise Fresh Capital in Ambitious Move

In a bid to bolster its financial position and drive further growth, FBN Holdings Plc has announced its plans to raise fresh capital, pending approval from shareholders at the group’s upcoming annual general meeting. The 11th annual general meeting is scheduled to take place next month, and the group’s notice of the meeting was recently issued to shareholders.

According to the notice, FBN Holdings intends to raise capital through a rights issue. The proposed capital raise will involve the creation of 8.974 billion ordinary shares, each valued at 50 kobo. The company aims to offer these shares to existing shareholders, providing them with an opportunity to purchase additional shares and increase their stakes in the company.

As of the latest trading data, FBN Holdings’ shares closed at N19.85 on the Nigerian Exchange Limited, which indicates the current valuation of the company in the stock market.

The notice further highlighted the specific resolutions that shareholders will consider and approve at the annual general meeting. One of the key resolutions is to increase the company’s issued share capital from its current value of NGN 17.95 billion, represented by 35,895,292,792 ordinary shares of 50 kobo each, to NGN 22.35 billion by creating 8,973,823,198 ordinary shares of 50 kobo each.

Regarding the capital raise, the resolution stated that the transaction would be executed through a rights issue. The specific terms and conditions of the rights issue, along with the dates, will be determined by the directors and will be subject to the necessary regulatory approvals.

In addition to the capital raise announcement, FBN Holdings revealed a notable appointment. Billionaire investor, Mr. Femi Otedola, has been named as a non-executive director of the company, subject to the approval of shareholders at the upcoming AGM. Mr. Otedola’s appointment to the board was made on July 9, 2023, and his expertise and business acumen are expected to add significant value to the group.

Furthermore, the group will also seek shareholders’ approval for the appointment of Samson Ariyibi as the executive director of finance, investment, management, and oversight. Mr. Ariyibi was appointed to the position on October 21, 2022, and his official confirmation will be a part of the agenda at the forthcoming annual general meeting.

With the prospect of fresh capital infusion and the addition of a prominent business figure to its board, FBN Holdings aims to strengthen its position in the financial services sector and capitalize on new growth opportunities. Shareholders eagerly await the annual general meeting to make critical decisions that will shape the future trajectory of the company.