First HoldCo raises N187bn in ‘oversubscribed’ rights issue, plans N350bn private placement

First HoldCo Plc says it has successfully concluded the first phase of its capital raising exercise for a N150 billion rights issue.

On November 1, 2024, the company announced plans to raise about N150 billion through a rights issue programme.

In a statement on Thursday, First HoldCo said the exercise recorded subscriptions totalling N187.6 billion — exceeding the initial target by over 25 percent.

Commenting on the outcome, Adebowale Oyedeji, group managing director of First HoldCo, described the oversubscription as a reflection of shareholders’ confidence in the company’s future.

He also acknowledged the role of regulators, including the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), in ensuring due process.

“The overwhelming response from our shareholders is a testament to the trust and confidence placed in the First HoldCo Group and its vision for the future,” Oyedeji was quoted as saying.

“This capital raise will empower the Group to strengthen its market position, invest in innovation, and drive sustainable growth in FirstBank, our 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 that of the capital market.

“We are excited about the opportunities ahead and remain committed to optimising value for our shareholders.”

On his part, Femi Otedola, chairman of First HoldCo Plc, also lauded the success of the capital raise, thanking shareholders for their commitment to the Group’s growth.

“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,” Otedola was also quoted as saying.

“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.

“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.”

In the statement, FirstHoldCo said the success of the rights issue paves the way for the second phase of raising about N350 billion through a private placement exercise, expected to commence soon.

A private placement is the sale of securities (stocks or bonds) directly to a selected group of investors, rather than to the general public.

The company called on all stakeholders to continue their support as it moves into the next stage of its capital-raising initiative.