…The resolution gives the board broad flexibility to tap both domestic and international capital markets through a combination of public offerings, private placements, rights issues, bonus issues, scrip dividends and other equity-linked instruments.
TUE JUNE 02 2026-theGBJournal| First Holdco Plc has secured shareholder approval to raise as much as N253.1 billion in fresh capital, marking a major step in the financial services group’s efforts to comply with Nigeria’s banking recapitalisation requirements and strengthen its balance sheet for future growth.
The approval was granted at the company’s 14th Annual General Meeting held virtually on May 29, authorising the board to execute a capital raising programme that would lift the group’s paid-up capital, including share capital and share premium, to N1 trillion.
The resolution gives the board broad flexibility to tap both domestic and international capital markets through a combination of public offerings, private placements, rights issues, bonus issues, scrip dividends and other equity-linked instruments.
The timing, structure, pricing and size of individual tranches will be determined by the board, subject to regulatory approvals.
The move places First Holdco among the major Nigerian banking groups racing to reinforce their capital positions following the Central Bank of Nigeria’s sweeping recapitalisation programme, which requires lenders to significantly increase their minimum capital thresholds over the coming years.
By seeking authority for a capital raise of up to N253.1 billion, the company is positioning itself to maintain a strong capital buffer while supporting loan growth, digital transformation initiatives and expansion opportunities across its banking and non-banking subsidiaries.
The enlarged capital base is also expected to enhance the group’s capacity to participate in larger-ticket transactions and withstand potential macroeconomic shocks.
Shareholders further authorised the company to increase its issued share capital by the number of ordinary shares required to implement the fundraising exercise.
The board was empowered to allot new shares, amend the company’s capital structure and undertake all regulatory filings necessary to effect the transaction.
The resolution also authorises First Holdco’s directors to secure the listing and admission of any newly issued securities on the Nigerian Exchange and other securities markets where deemed appropriate, providing flexibility to attract a broader pool of institutional and international investors.
The planned fundraising follows a period of heightened activity in Nigeria’s banking sector, where lenders have increasingly turned to rights issues, public offerings and private placements to meet higher regulatory capital requirements.
For First Holdco, the exercise represents both a compliance measure and a strategic opportunity to strengthen investor confidence, deepen financial resilience and position the group for the next phase of growth in Africa’s largest economy.
Investors will now be watching the structure of the capital raise, the level of shareholder participation and the valuation at which new securities are issued, factors that could shape market sentiment toward the stock and influence the group’s capital trajectory in the months ahead.
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