Nigerian banking group FBN Holdings has announced its intention to seek shareholder approval to raise up to 300 billion naira ($241 million) through a public share offering or private share sale, according to a notice released on Monday.
Shareholder Approval Meeting Scheduled
The holding company, which includes First Bank among its subsidiaries, has scheduled a shareholder meeting for April 30 to discuss and vote on the proposed fundraising initiative.
Share Price Performance
Shares of FBN Holdings, which reached a peak of 43.95 naira in March, are currently trading at 30.50 naira on the Nigerian stock exchange.
Context: Recapitalization in Nigeria’s Banking Sector
This move comes amid a backdrop of impending recapitalization in Nigeria’s banking sector. The Central Bank of Nigeria recently announced new minimum capital requirements for lenders, aiming to encourage banks to play a more substantial role in stimulating economic growth.
Similar Actions by Competitors
In a similar vein, rival lender Access Holding Plc, the parent company of Access Bank, Nigeria’s largest bank, disclosed plans last month to seek shareholders‘ approval for a $1.5 billion capital raising program.
Source: BusinessDayNg