FBN Holdings Plc has announced a proposal to change its legal and brand name to First Holdco Plc at its forthcoming 12th Annual General Meeting (AGM), scheduled for November 14, 2024.
This proposed rebranding, which will also extend to its subsidiaries, is part of a series of special resolutions to be considered by shareholders at the AGM.
The company’s directors will be authorized to take all necessary actions to execute the name change, including amending the company’s Memorandum and Articles of Association to reflect the new legal name and share capital structure, subject to regulatory approvals.
Strategic Rebranding for a New Era
The rebranding to First Holdco Plc marks a pivotal moment for FBN Holdings as it seeks to modernize its identity and streamline its corporate structure.
This change is designed to better reflect the company’s evolution into a diversified financial services group, while still maintaining its position as one of Nigeria’s most established financial institutions, with over 130 years of history.
By extending the new name across all its subsidiaries, FBN Holdings aims to present a unified brand that strengthens its market presence and aligns with its long-term strategic vision.
Backstory: Revised Rights Issue to Raise N350 Billion
The proposed name change comes amid FBN Holdings’ ongoing efforts to raise capital and strengthen its balance sheet.
- As Nairametrics reported, the company recently revised its proposed Rights Issue to N25 per share, seeking to raise N350 billion.
- This rights issue will allow the company to issue 5,982,548,799 ordinary shares of 50 kobo each at N25 per share, on the basis of 1 new ordinary share for every 6 ordinary shares held as of October 18, 2024.
- Initially, the company had planned a larger capital raise, proposing to issue 8,973,823,198 shares at N15.50 per share. However, the earlier proposal was suspended, following legal challenges from an aggrieved shareholder.
- FBN Holdings has since adjusted its strategy, with the revised rights issue set to be a major agenda item at the upcoming AGM.
The capital raised will be used to improve the company’s capital adequacy ratio and support its growth ambitions, including further investments in its subsidiaries.
The move to consolidate its brand under the First Holdco Plc name aligns with this broader financial strategy.
Shareholder and Regulatory Approvals Required
- For the name change and rights issue to proceed, both proposals must be approved by shareholders at the AGM.
- Additionally, FBN Holdings will need to secure necessary approvals from regulatory bodies, including the Nigerian Exchange Limited (NGX) and the Central Bank of Nigeria (CBN).
- Once all approvals are in place, the company will amend its governance documents and roll out the rebranding initiative across its operations.
- This AGM is expected to be a critical step in FBN Holdings’ ongoing transformation, as the company prepares for its next phase of growth.