The board of directors of First Bank Nigeria (FBN) Holdings have resolved to raise more capital in the stock market by way of Rights Issue.
FBN Holdings will sell part of the company’s stake to existing shareholders at a discounted price determined by the company.
Prime Business Africa learnt that the request to raise more funds in the capital market will be tendered to shareholders at FBN Holdings’ Annual General Meeting (AGM) on the 15 of August 2023.
In the statement conveying FBN Holdings’ operational plan, the firm said: “That the Rights Issue referred to in Resolution may be underwritten on such terms as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.
“That the shareholders, under Resolution, will waive their preemptive rights to any unsubscribed shares under the Rights Issue in the event of an under-subscription.”
Recall that Prime Business Africa had exclusively reported that following the naira float by the President Bola Ahmed Tinubu’s federal government in June, 40 percent of Nigerian banks may take steps to raise new equity capital.
FBN Holdings’ board stated that shareholders will vote on authorising directors “to appoint such professional parties and advisers and to perform all such other acts and do all such other things as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority,” the statement reads.
The company further averred: “That Clause 6 of the Memorandum of Association of the Company be amended to reflect the newly issued share capital of 22.435 billion by the creation of 8.974 billion Ordinary shares of 50 Kobo each.”
FBN Holdings’ announcement comes days after Fidelity Bank informed its shareholders that it will sell 13.2 billion shares to raise over N90 billion.
Fidelity Bank split the shares to be sold into two; 10 billion shares will be sold to new investors through Public Offer and 3.2 billion shares will be sold to existing shareholders through Rights Issue.
Fidelity Bank’s shareholders are expected to vote on the decision at the company’s Extra-Ordinary General Meeting, on 11 August 2023.