FBN Holdings Plc (FBNH), one of Nigeria’s leading financial institutions, has launched a rights issue of 5,982,548,799 ordinary shares at N25.00 per share.
This Rights Issue, aimed at raising N149.56 billion, is a strategic step to ensure compliance with the Central Bank of Nigeria’s (CBN) capital requirement.
Beyond regulatory compliance, the proceeds are expected to bolster liquidity, enhance financial stability, and position First Bank of Nigeria Limited, FBNH’s flagship subsidiary, for sustained growth and strengthen its position within the competitive Nigerian financial landscape.
The offering, based on an entitlement of one new ordinary share for every six shares held as of the qualifying date, October 18, 2024, appears to have been well-received by the market.
On November 4, the opening day of the rights issue, FBNH’s share price closed at N26.80, reflecting a 7.6% appreciation above the issue price.
The stock has since climbed further, trading at 9.6% above the issue…