FirstHoldco Plc has disclosed the successful completion of its N150 billion Rights Issue, which was oversubscribed by an impressive 25%.
This milestone sets the stage for the company’s next phase: a planned Private Placement to raise an additional N350 billion.
This was contained in a press statement issued on Thursday.
Speaking on the capitalisation exercise, Adebowale Oyedeji, Group Managing Director of FirstHoldco Plc, highlighted the strong investor confidence demonstrated in the first phase of the capital raise initiative.
“We are delighted to announce the successful completion of the up to N150 billion Rights Issue following impressive subscriptions of N187.6 billion, over 25% above target, in this first phase of the capital raise exercise,” he stated.
Oyedeji emphasized that the overwhelming response from shareholders signifies trust in the company’s strategic vision. He added that the newly raised capital will enable FirstHoldco to enhance its market position, invest in innovation, and support sustainable growth for FirstBank, its flagship subsidiary.
“We extend our profound appreciation to the Central Bank of Nigeria and the Securities and Exchange Commission for their support in ensuring the integrity of the process and the capital market,” he remarked.
Strong Shareholder and Stakeholder SupportThe Chairman of First Holdco Plc, Femi Otedola, echoed Oyedeji’s sentiments, expressing gratitude for the strong participation of shareholders and stakeholders in the Rights Issue.
“On behalf of the Board of Directors, I would like to extend my heartfelt gratitude to all our shareholders and all stakeholders involved in this successful Rights Issue offer. The strong participation is a clear indication of the collective belief in First Holdco and its bright future,” he said.
Otedola also acknowledged the guidance and support provided by the regulators, including the Central Bank of Nigeria and the Securities and Exchange Commission, ensuring full compliance and transparency throughout the process.
“We deeply appreciate the continued support and partnership, which enables us to embark on this next phase of growth,” he added.
What you should know With the shareholders’ overwhelming approval during the company’s 12th Annual General Meeting on November 14, 2024, FirstHoldco is now set to proceed with the second phase of its capitalisation exercise—a Private Placement to raise up to N350 billion.This approval includes provisions to pursue capital raises through multiple avenues, including public offerings, private placements, and rights issues, in both Nigerian and international capital markets.Additionally, shareholders approved a dividend of 40 kobo per 50 kobo ordinary shares, amounting to N14.36 billion, to be distributed for the 2023 financial year. They also authorized the Board of Directors to take any necessary actions to implement the resolutions, including compliance with directives from relevant regulatory authorities.FirstHoldco recently reported significant financial achievements. For the 2023 financial year, the group declared an annual dividend payout and reaffirmed its commitment to leveraging innovative strategies to ensure future growth.
The company is now poised to further solidify its market presence and accelerate its expansion efforts in the coming years.
Israel Ojoko Israel Ojoko is a dynamic journalist renowned for his in-depth coverage and insightful analysis on a diverse range of topics. With a keen eye for detail and a passion for storytelling, Israel has penned impactful articles on the economy, political developments, fintech, and cybersecurity, among many others. His dedication to uncovering the multifaceted narratives has established him as a trusted voice and influential figure in contemporary journalism.
