First Bank to Seek Shareholders’ Approval for N300bn Capital Raise
First Bank Holding Plc, one of the nation’s premier commercial banks, will seek shareholders’ approval to raise N300 billion in additional capital at the group’s Extraordinary General Meeting (EGM) scheduled to hold virtually on Tuesday, April 30, 2024.
This was contained in the group’s amended notice of the Extraordinary General Meeting.
According to the notice, the capital raise transaction shall be by shares issuance via public offer, private placement or rights issue in the Nigerian or international capital markets at price to be determined by way of a book-building process or any other valuation method or combination of methods.
The notice said the issuance of shares will be in such tranches, series, or proportions and at such periods dates, coupon or interest rates within such maturity periods and upon such other terms and conditions as may be determined by the board of directors, subject to obtaining the approvals of the relevant regularly authorities.
Other special resolutions to be passed:
At the upcoming EGM, the shareholders will also have the opportunity to consider and pass the following special resolutions:
That the capital raise referred to in resolution {a) above may be underwritten on such terms as may be determined by the directors subject to obtaining the approvals of the relevant regulatory authorities.
That the directors be and are hereby authorized to undertake all necessary actions to secure the listing and admission to trading of securities issued pursuant to the foregoing resolution on the official list of the Nigerian Exchange Limited, and/or on any other securities exchanges or market.
That the directors be and are hereby authorised to appoint such professional parties and advisers and to perform all such other acts and do all such other things as may be necessary, to give effect to the above resolutions, including without limitation, executing necessary documents in Connection with the capital raise, determining the final structure of the capital raise. interfacing and complying with the directives of any regulatory authority.
Upon completion of the process for allotment of the new ordinary shares in accordance with the resolution above, the Memorandum and Articles of Association of the Company be amended as necessary to reflect the company’s newly issued share capital.
FBN Holdings posted its unaudited financial statements for FY 2023 recording a profit before tax of N362.24 billion, a 129% growth from the N157.90 billion reported in FY 2022.
The group posted an interest income of N917.71 billion in FY 2023, reflecting a 66% increase from the N551.94 billion posted in FY 2022. The group realized a gain of N251.10 billion attributable to the devaluation of the Naira, primarily arising from exchange differences in the translation of its foreign operations.
In Q4 2023, the group posted a pre-tax profit of N91.91 billion, representing a year-on-year growth of 75% from Q4 2022.
In FY 2023, the group’s total assets increased to N16.90 trillion, representing a 60% growth from the N10.58 trillion total assets reported in FY 2022.
The commercial banking group, First Bank of Nigeria Limited, generated 93% (N1.42 trillion) of the group’s total revenue (N1.52 trillion) in FY 2023.
The group’s investment securities in FY 2023 increased by 31% to N3.05 trillion, from N2.32 trillion in FY 2022. While its deposits from customers in FY 2023 increased by 53% to N10.87 trillion from N7.12 trillion in FY 2022.
