FBN Holdings Plc has made a request to the Nigerian Exchange Limited for permission to raise N139 billion in additional capital through a rights issue.
The Punch reported that this information was provided by the NGX Regulations in a notice to Trading Licence Holders on Monday.
It stated that its stockbrokers, FBNQuest Securities, requested authorization on behalf of the lender.
The notice stated in part that “its stockbrokers, FBNQuest Securities Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a Rights Issue of Eight Billion, Nine Hundred and Seventy-Three Million, Eight Hundred and Twenty-Three Thousand, One Hundred and Ninety-Eight (8,973,823,198) ordinary shares of 50 kobo each at N15.50 per Share on the basis of one new ordinary share for every four ordinary shares held as at the close of business on Monday, 9 October 2023.”
Shareholders were informed of the company’s plans to seek money through a rights issue for upcoming growth projects in a notice of its 11th annual general meeting that was distributed back in July.
The AGM notice stated, “There would be a capital raise. The capital raise transaction will be a rights issue, on the terms and at the times that the Directors decide, provided that the necessary regulatory authority approvals are obtained.”
The company’s issued share capital was increased at its AGM from N17.95 billion, consisting of 35, 895,292,792 ordinary shares, to N22.43 billion by the issuance of 8.973,823,198 ordinary shares, each worth 50 Kobo. This was approved by 98.76% of the shareholders with voting rights. Only 1.24 percent of the electorate opposed the resolution.
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