First HoldCo Plc has commenced a public offering aimed at raising approximately $1 billion, marking one of the most significant capital-raising exercises in Nigeria’s financial sector as the group seeks to strengthen its banking operations and expand into new areas of financial services.
The company is offering 10.4 billion shares to investors following approval from the Central Bank of Nigeria (CBN). The shares were previously held by RC Investment Management, which acted as a bridge shareholder after Barbican Capital exited its investment in the financial services group.
The offering comes as Nigerian banks and financial institutions continue to pursue strategies aimed at strengthening their capital positions and preparing for increased competition across the financial services industry.
According to First Bank Chief Executive Officer Olusegun Alebiosu, proceeds from the transaction will be used to reinforce the capital base of the group’s banking subsidiary. The additional capital is also expected to provide support for First HoldCo’s broader expansion strategy as it seeks to develop its presence in insurance underwriting and financial technology services.
The planned expansion reflects the growing convergence of banking, insurance and technology in Nigeria’s financial services market. By strengthening its capital position and investing in new business lines, the group aims to build a more diversified financial services platform capable of serving a wider range of customers.
Investor interest in the offering appears to be strong, with Alebiosu indicating that the share sale could potentially be completed within a week if demand remains at current levels.
Market sentiment surrounding the transaction has also been reflected in the company’s share price. First HoldCo’s stock climbed by nearly six per cent during trading, pushing the shares to a record high as investors responded positively to the capital-raising plan and the company’s future growth prospects.
The stock has now gained more than fourfold in value since July last year, highlighting the significant improvement in investor confidence in the financial services group.
The sharp rise in the share price comes against the backdrop of renewed interest in Nigeria’s banking sector, where institutions are seeking to improve their financial strength, expand their operations and take advantage of opportunities created by the country’s growing digital economy.
For First HoldCo, the latest capital-raising exercise could provide additional financial capacity to pursue its strategic objectives while strengthening the foundation of its core banking business.
The planned investment in insurance and fintech is also expected to diversify the group’s revenue sources and reduce its reliance on traditional banking activities. The strategy could position the company to benefit from growing demand for digital financial services and insurance products across Nigeria and other markets.
However, the success of the offering will ultimately depend on the level of investor participation and the company’s ability to deploy the new capital effectively.
With the public offering now underway and investor demand reportedly strong, First HoldCo is positioning the transaction as a major step in its long-term growth strategy. If completed as expected, the $1 billion share sale could further strengthen the group’s balance sheet and provide the financial resources needed to pursue expansion across Nigeria’s rapidly evolving financial services landscape.
