FBN Holdings Plc (NGX: FBNH) is set to raise up to ₦300.00 billion capital by issuance of new shares. At an Extraordinary General Meeting (EGM) of the financial holding company, shareholders will be asked to approve the capital raise. The EGM is set to hold virtually on Thursday, April 30, 2024.
Also read; CBN sells US$10,000 to 1,588 BDCs at ₦1,101 per US$
The capital raise transaction shall be by issuance of shares via a public offering, private placement, rights issue in the Nigerian or International capital markets.
Price(s) for the new shares will be determined by way of a book building process or any other valuation method or combination of methods.
Upon approval of shareholders and regulatory authorities, the Board of Directors of FBNH will determine the terms of the transaction.
Shareholders at the EGM will also be asked to authorise the Directors to undertake all necessary actions to secure the listing and admission to trading of securities issued on the Official List of the Nigerian Exchange Limited, and/or on any other securities exchange(s) or market(s).
FBN Holdings Plc has 35,895,292,792.00 outstanding shares, and a market capitalization of ₦1.04 trillion. At the end of trading on Monday, the share price of FBNH closed at ₦29.05.
The Central Bank of Nigeria had in March announced an upward review of the minimum capital requirements for commercial, merchant and non-interest banks in Nigeria.
All existing banks are required to meet the minimum capital requirement within a period of 24 months commencing from April 1, 2024 and terminating on March 31, 2026.
For commercial banks with international authorisation, the minimum capital is now ₦500 billion. Commercial banks with national authorisation will require a minimum capital of ₦200 billion, while those with regional authorization will require ₦50 billion.
FBN Holdings Plc owns 100% of First Bank of Nigeria Limited. First Bank of Nigeria Limited commenced operations in Nigeria in 1894 as a branch of Bank of British West Africa (BBWA), and was incorporated as a private limited liability company in Nigeria in 1969.
The Bank was the parent company of the Group until 30 November 2012, when a business restructuring was effected in accordance with the directives of the Central Bank of Nigeria and FBN Holdings Plc (FBNH) became the parent company of the Group.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur