First Bank Holding Plc has announced plans to seek shareholders’ approval for a capital raise of N300 billion. The decision was revealed in the group’s amended notice of the Extraordinary General Meeting (EGM) scheduled to take place virtually on Tuesday, April 30, 2024.
The capital raise transaction is intended to be executed through shares issuance via public offer, private placement, or rights issue in either the Nigerian or international capital markets. The pricing of the shares will be determined through a book-building process or other valuation methods, as specified in the notice.
The issuance of shares will occur in tranches, series, or proportions, and the terms and conditions will be determined by the board of directors, subject to approval from relevant regulatory authorities.
Among the special resolutions to be considered and passed at the EGM are:
1. Approval for the capital raise to be underwritten, subject to regulatory approvals.
2. Authorization for the directors to secure listing and admission to trading of the securities issued.
3. Empowerment of the directors to appoint professional parties and advisers and undertake necessary actions to facilitate the capital raise process.
Upon completion of the allotment process for the new ordinary shares, amendments to the Memorandum and Articles of Association of the Company will be made to reflect the updated share capital.
FBN Holdings recently reported its unaudited financial statements for FY 2023, revealing significant growth in profit before tax, interest income, and total assets. The group’s profit before tax surged by 129% to N362.24 billion, compared to N157.90 billion in FY 2022. Interest income also increased by 66% to N917.71 billion.
In Q4 2023 alone, the group achieved a pre-tax profit of N91.91 billion, representing a 75% year-on-year growth. Total assets for FY 2023 reached N16.90 trillion, a 60% increase from FY 2022.
First Bank of Nigeria Limited, the commercial banking arm of FBN Holdings, contributed significantly to the group’s revenue, generating 93% (N1.42 trillion) of the total revenue of N1.52 trillion in FY 2023.
Additionally, the group’s investment securities and customer deposits witnessed substantial growth in FY 2023, reflecting strong performance and market presence.
The proposed capital raise is expected to further strengthen FBN Holdings’ financial position and support its strategic objectives for sustainable growth and market leadership.
