FBN Holdings Shareholders Approve N350bn Capital Raise

The shareholders of FBN Holdings have approved the company’s plan to raise up to N350 billion in additional capital and change its legal and brand names.

The approval was granted during the company’s virtual Annual General Meeting (AGM), and the resolutions made at the meeting were filed with the Nigerian Exchange Limited on Friday.

In addition to the capital raise, shareholders approved a dividend of 40 kobo per 50 kobo ordinary share, totaling N14.36 billion, to be distributed to registered shareholders for the 2023 financial year.

The resolution read in part: “The company is hereby authorized to raise up to N350 billion in capital. The capital raise may be executed through various means, including a public offering, private placement, rights issue, or other methods, either in the Nigerian or international capital markets. The specific terms of the offering, including the pricing, tranches, series, periods, interest rates, and other conditions, will be determined by the Board of Directors, subject to obtaining the relevant regulatory approvals.”

FBN Holdings is currently in the process of a rights issue aimed at raising N150 billion to strengthen its capital base, which aligns with the Central Bank of Nigeria’s directive for banks in the country to increase their capital.

Regarding the name change, shareholders approved: “The legal and brand names of the company be changed from FBN Holdings Plc and FBNHoldings to First Holdco Plc and FirstHoldco, respectively. This name change will also extend to the company’s subsidiaries.”

The shareholders authorized the Board of Directors to take any necessary actions to implement these resolutions, including complying with the requirements of relevant regulatory bodies.

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Furthermore, upon completion of the name change, capital increase, and allotment of new shares, the company’s Memorandum and Articles of Association will be amended to reflect the new legal name and issued share capital.

The Board had proposed the name change in its AGM notice, marking a significant rebranding effort for the financial group.