First HoldCo, Nigeria’s most valuable financial institution with a N6.09 trillion market capitalisation, is seeking to raise N1.4 trillion ($1 billion) through a share sale after securing permission from the Central Bank of Nigeria.
- +Nigeria’s most valuable bank seeks buyers for $1bn block of bridge-held shares
The offering, which consists of a 10.4 billion share block, officially opened to buyers on Monday.
The offering, which consists of a 10.4 billion share block, officially opened to buyers on Monday. According to Olusegun Alebiosu, the bank’s chief executive officer, the market response has already been overwhelming.
“The sale is starting today — the reality here is that I am not sure it will stay more than one week based on the pressure we are getting,” he said.
This public offering is the final step in resolving a complex corporate drama. Last year, during a leadership and ownership tussle, Barbican Capital Ltd. offloaded its massive equity position in the lender. To stabilise the ownership structure, First HoldCo transferred a quarter of its total shares to RC Investment Management Ltd., which acted as a temporary bridge holder until regulatory approvals allowed the bank to float the block to the broader public.
The proceeds of the N1.4 trillion injection will not only strengthen the core banking unit’s capital base but also fund the holding company’s expansion into insurance underwriting and financial technology services.
Investors reacted bullishly to the start of the sale. First HoldCo’s stock surged by 3.43 percent to close at N134 by the end of trading.
