First HoldCo records 25% oversubscription of rights issue

First HoldCo Plc said its recently concluded rights issue was oversubscribed by 25 per cent as it reported N187.6 billion in subscriptions from existing shareholders even though it set out to raise N150 billion.

The company’s managing director, Adebowale Oyedeji, said the transaction has received capital verification from the Central Bank of Nigeria.

The financial services group noted that the strong interest from investors affirms “the trust and confidence placed in the FirstHoldCo Group and its vision for the future.”

Lenders in Nigeria are in a race to raise capital buffers to new thresholds set by the central bank for core capital and have until March 2026 to meet the new requirements.

First Bank of Nigeria, the country’s oldest lender and the commercial banking division of First HoldCo, needs to buck up its tier 1 capital to at least N500 billion as required of lenders holding international banking licenses.

Other lenders within this category include Access Bank, United Bank for Africa, Zenith Bank, Guaranty Trust Bank, Fidelity Bank, FCMB Group, Stanbic IBTC Bank and Union Bank.

First HoldCo is looking to use the proceeds from the rights issue to strengthen its position in the market, invest in innovation, and drive sustainable growth in First Bank.

“The strong participation is a clear indication of the collective belief in FirstHoldCo and its bright future. We deeply appreciate the continued support and partnership, which enables us to embark on this next phase of growth,” said Femi Otedola, chair of the group’s board of directors.

“We also wish to acknowledge our regulators, the Central Bank of Nigeria and the Securities and Exchange Commission, for their guidance and support throughout the process, ensuring that all procedures were transparent and in full compliance with the applicable regulations,” he added.

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The group hopes to source the remaining N350 billion for the recapitalisation exercise by way of private placement, having received shareholders’ approval last November to proceed with the move.

According to its unaudited earnings report, First HoldCo reported a 138.1 per cent jump in net profit to N738.9 billion last year.