FirstHoldCo Plc has announced that it successfully raised N150 billion Right Issue. The shares were oversubscribed by 25 percent with a total of N187.6 billion shares subscribed by its shareholders.
The right Issue is usually issued by companies to their existing shareholders. The issue was first announced earlier in November 2024, making it four months since when the right issue was made.
CBN 1 trillion Economy and Bànk's Licence
Commercial banks in Nigeria were required to increase the capital requirement to N500 billion for internationally recognized banks, N200 billion for National banks, and N50 billion for regional licences. The directives were given in April 2024 and are expected to elapse in March 2026. The goal of the new requirement was as a result of the Apex Bank plan to build a one trillion economy.
Internationally recognized banks in Nigeria that cannot meet the new capital base can opt for a national banking licence. National banks can use the opportunity to have an international licence if their current shareholders can afford it.
Future plans of FirstHoldCo
According to the unaudited financial statements published by the Group in the NGX, the company has N17 billion as its total share capital. This implies that the N150 billion rights issue is not enough to cover the N500 billion.
FirstHoldCo Plc announced that it plans to issue a Right Issue in 2023 before CBN directives as mentioned above. Therefore, it has sought approval for a private placement of N350 billion which will commence this year. Therefore making the total share capital raised to be N600 billion enough to build a strong foundation for the CBN 1 trillion economy objective.
As of the time of writing, FirstHoldCo Plc shares were 27 Naira.
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