FBNH Crossed N1trn after Merchant Bank Divestment Notice
The financial services companies’ warehouse, FBN Holdings Plc, has crossed N1 trillion market on the Nigerian Exchange (NGX) after the group announced decision to divest its merchant bank.
Investors queue behind the group in the equities market as the financial services group that warehouse FBNQuest Merchant bank, FBNQuest Capital, FBNQuest Asset Management, FBNQuest Trustees FBNQuest Funds and FBNQuest Securities Ltd gained fresh popularity.
Improved investors sentiment which was triggered by divestment plan caused share price to climb by about 32% in the last seven trading sessions, up from N22 to N29 per share on Friday.
Its 35.895 billion shares outstanding in the equities market was priced at N1.04 trillion at the close of trading session on Friday, up by 31.81% week on week due to fresh rally..
FBN Holdings is selling its aged long merchant business to a newly incorporated EverQuest Acquisition LLP for a yet to be disclosed sum. For the market, the move has been generally positive. Due to some internal heat, FBN Holdings has not met with shareholders for its annual general meeting.
The meeting has again been postponed indefinitely despite tight deadline for recapitalisation of its cash cow banking subsidiary, FirstBank of Nigeria Limited.
The group had revealed a plan to raise about N350 billion in fresh capital following shareholders’ approval at the annual general meeting. It share price had plunged significantly, traded at more than 50% discount to 52-week high as it became target for sell side actors who quickly took early exits.
The latest merchant bank business divestment notice which suggests the group has other plans that could raise its market fundamental and business agility raised investors’ sentiments.
Share price movement is important, and fundamentally major determinant of how FBN Holdings capital raise would be determine. Analysts told MarketForces Africa that decision to divest is clear.
Recapilisation of First Bank of Nigeria and FBNQuest Merchant Bank Limited with first quarter of 2026 deadline would put strong pressures on the financial services group. #FBNH Crossed N1trn after Merchant Bank Divestment Notice
