FBN Holdings to Seek Dhareholders’ Approval for N300bn Fresh Capital
Kayode Tokede
FBH Holdings Plc, yesterday said it will be seeking shareholders’ approval to raise N300 billion via private placement in additional capital at the group’s Extraordinary General Meeting (EGM) scheduled for this month.
The group in its unaudited full year ended December 31, 2023 declared N1.7 trillion total equity as against N995.7 billion in 2022.
FBH Holdings’s share capital and share premium stood at N17.95 billion and N233.39billiion in 2023 respectively, while retained earnings increased to N675.12 billion in 2023 from N397.71 billion reported in 2022
The Central Bank of Nigeria (CBN) in March announced new minimum capital requirements of N500 billion and N200 billion for commercial banks with international and national authorization respectively.
Meanwhile, the Acting Company Secretary, FBN Holdings, Mr. Adewale Arogundade in a signed statement posted on the Nigerian Exchange Limited (NGX), said shareholders at the EGM would be considering and if though fit authorised to undertake a capital raise up to N300 billion via a public offering, private placement, right issue in the Nigerian or international capital markets.
Accordiing to the notice on NGX, Arogundade 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.
“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 announced its unaudited financial statements for 2023 recording a profit before tax of N362.24 billion, a 129per cent growth from the N157.90 billion reported in 2022.
The group posted an interest income of N917.71 billion in 2023, reflecting a 66 per cent 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 per cent from Q4 2022.
In 2023, the group’s total assets increased to N16.90 trillion, representing a 60per cent growth from the N10.58 trillion total assets reported in 2022.
