Breaking: FBN Holdings sets new AGM date to approve N350 billion in rights issue, targets N25 per share  

The updated proposal seeks to issue 5,982,548,799 ordinary shares of 50 kobo each at N25 per share, replacing the previous offer of 8,973,823,198 ordinary shares at N15.50 per share.

The new Rights Issue is structured on the basis of 1 new ordinary share for every 6 ordinary shares held, with a qualification date of October 18, 2024.

This comes after the original offer was suspended, reportedly following a court injunction sought by an aggrieved shareholder. Despite this legal roadblock, FBN Holdings appears to have received the green light to proceed with its strategic plans.

The company’s Annual General Meeting (AGM), set for November 14, 2024, will see the proposed Rights Issue as a key agenda item, as indicated in the AGM notice, further solidifying the group’s capital-raising efforts.

The revised Rights Issue is part of FBN Holdings’ long-running efforts to shore up its capital base and position itself for long-term growth.

As Naijaonpoint reported in August 2023, FBN Holdings had initially proposed a N150 billion capital raise to improve its balance sheet. Shareholders approved the capital raise in August 2023 alongside the appointment of Femi Otedola as a director, cementing a new era of leadership at the institution.

However, the company later expanded its ambitions, aiming for a N300 billion capital raise by early 2024. This plan was halted in April 2024, when the group cancelled its Extraordinary General Meeting following a court injunction filed by an aggrieved shareholder, which delayed the capital-raising process.

Now, with the AGM set for November 14, 2024, it appears FBN Holdings is ready to move forward, using the AGM as a platform to secure approvals for both the revised Rights Issue and a larger N350 billion capital raise.

According to the notice, the meeting will also discuss the election of new directors, including the formal ratification of Adebowale Oyedeji as Group Managing Director, effective November 13, 2024. Naijaonpoint earlier reported that Mr. Oyedeji was announced as the new Group Managing Director of the HoldCo taking over from Nnamdi Okonkwo.