FirstHoldCo Plc, the parent company of First Bank of Nigeria, is set to seek shareholder approval for a capital raise of up to N253.099 billion. This initiative is part of the group's ambitious plan to reach a N1 trillion paid-up capital base, encompassing both share capital and share premium.
The proposed fundraising is detailed in the notice for the group's 14th Annual General Meeting (AGM), scheduled for May 29, 2026. Shareholders will convene to consider resolutions focused on equity capital raising and strengthening the company's balance sheet.
According to the filing with the Nigerian Exchange (NGX), the capital raise will be executed through one or more transactions, in such tranches, series, or proportions as determined by the Board of Directors, pending regulatory approvals.
The directors are seeking authority to raise fresh equity capital via a combination of public offerings, private placements, rights issues, bonus issues, scrip dividends, or other equity instruments. These issuances may occur in both Nigerian and international capital markets.
Pricing for the capital raise will be determined through a book-building process or other valuation methods, at the Board's discretion. This strategic move aims to bridge the gap towards the N1 trillion paid-up capital target.
This target of N1 trillion would significantly surpass the Central Bank of Nigeria's (CBN) current minimum requirement of N500 billion for international banking authorization. FirstHoldCo's objective aligns with Chairman Femi Otedola's public advocacy for a higher capital base for banks operating in Nigeria's economy.
The initiative follows closely after First Bank of Nigeria successfully met the CBN's existing N500 billion threshold for international banking licenses. By aiming for N1 trillion, FirstHoldCo is positioning itself to lead a potential industry-wide capital consolidation.
In related news, Femi Otedola's leadership at FirstHoldCo has been marked by significant strategic decisions, including a substantial N830 billion impairment charge last year. This move, though historically significant, has paved the way for improved financial performance, with the bank reporting a 72% rise in profits and a return on equity of 31.6% in a recent quarter, outperforming competitors like GTCO and Access Holdings.
