FBN Holdings Sheds 8% as Investors Exit Positions

FBN Holdings Sheds 8% as Investors Exit Positions

FBN Holdings Plc’s market value fell by 8%, or about N79 billion, on the Nigerian Exchange as investors exited their position in the financial services company. This has brought its stock market price near its rights offer price.

Last week, investors sold down their interest in FBN Holdings in the open market amidst ongoing 1-for-6 rights issues to shareholders as part of efforts to boost capital base.

At the annual general meeting (AGM) held on August 15, 2023, FBN Holdings said shareholders approved the creation of additional 8.974 billion shares to be issued to existing shareholders via a rights issue of one for every four held.

But the group is in the market to raise N149,563,719,975 from shareholders to boost its capital position, selling more than 5.982 billion shares in one for every six-share offer.

The financial services group priced its rights issue to shareholders at N25, and in the market, the stock traded at N25.40 from N27.60 at the beginning of last week.

Data from the Nigerian Exchange showed FBN Holdings market value declined to N911.74 billion on Friday after it lost N78.969 billion due to activities of sell-side traders. The stock volatility has become relatively stable following earnings releases and a slowdown in its internal heat among vested interests.

According to some analysts, FBN Holdings Plc is well positioned to become a top banking group in Africa. The group total assets settle at N27.49 trillion, with N12.72 trillion in loans and advances and N21.22 trillion in customer deposits.

The Nigerian Exchange Banking Index fell by 2.57% last week as investors booked profit on top tier-1 banks, with FBN Holding driving the weekly loss. #FBN Holdings Sheds 8% as Investors Exit Positions Naira Plunges on Suboptimal FX Intervention