FirstHoldCo plans N253 billion Equity raise, targets N1 trillion capital base

FirstHoldCo Plc has tabled plans to raise up to N253 billion in fresh capital, a move aimed at taking its total share capital and share premium to N1 trillion.

The proposal was disclosed in a notice to shareholders ahead of the company’s Annual General Meeting (AGM).

The move positions the financial services group, which owns First Bank, to become the first Nigerian financial institution to attain a N1 trillion capital base, well above the Central Bank of Nigeria’s minimum requirement for banks with international banking licenses.

What they are saying

In a notice shared with shareholders ahead of its AGM, the company stated that it is seeking approval to raise up to N253 billion through one or more equity-related transactions.

The planned raise is expected to strengthen its capital base and support long-term growth ambitions.

• “That the Company be and is hereby authorised to undertake a capital raise of up to N253,099,328,580.50 (Two hundred fifty-three billion, ninety-nine million, three hundred twenty-eight thousand, five hundred eighty naira and fifty kobo) to achieve N1 trillion paid up capital comprising share capital and share premium.”
• “The capital raise transaction shall be implemented by one or more transactions, through the issuance of shares, by way of a public offering, private placement, rights issue, bonus issues, scrip dividend, or other equity instruments in the Nigerian or international capital markets.”
• “The transaction may be executed at prices to be determined through a book building process or any other valuation method, in such tranches, series or proportions and upon such terms and conditions as may be determined by the Board of Directors, subject to regulatory approvals.”

Data from the group’s first quarter 2026 financial statement shows that its total share capital and share premium currently stand at N480.6 billion, while shareholders’ funds are valued at N3.4 trillion.

More Insights

The Central Bank of Nigeria recently announced the conclusion of the banking recapitalisation exercise, with 33 banks successfully meeting the new capital requirements.

The exercise was introduced to strengthen the banking sector and improve the resilience of financial institutions.

• The apex bank disclosed that a total of N4.65 trillion was raised during the 24-month recapitalisation exercise across the banking sector.
• According to the CBN, capital adequacy ratios across the industry are now above

Basel benchmarks improving banks’ ability to support economic growth and absorb financial shocks.

• The FUGAZ banks — FirstHoldCo, UBA, GTCO, Access Holdings and Zenith Bank — all met the N500 billion minimum requirement for international commercial banking licences. Fidelity Bank and FCMB also crossed the N500 billion threshold.

At its current market price of N67.8 per share, FirstHoldCo may need to issue an estimated 3.73 billion additional ordinary shares to raise the proposed capital, adding to its existing 44.4 billion ordinary shares.

If successful, the additional N253 billion capital injection would raise the group’s qualifying capital to about N733 billion, making it the largest capitalised banking institution in the country.

What you should know

FirstHoldCo Plc recently released its unaudited Q1 2026 financial results, posting strong earnings growth across key performance indicators.

The results reflect continued expansion in profitability and shareholder value.

• The group reported a pre-tax profit of N321.12 billion in Q1 2026, representing a 72.20% increase compared to N186.48 billion recorded in the corresponding period of 2025.
• Profit after tax rose to N267.80 billion, up by 56.52% from N171.10 billion reported in Q1 2025.
• Earnings per share increased to N6.00 compared to N4.72 in the same period last year.

The company’s share price also gained momentum in the equities market, closing 9%. (Nairametrics)