FBN Holdings shares surge 16% in one week as right issue nears

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Shares of FBN Holdings, Nigeria’s oldest bank surged 6.35% on Tuesday as the bulls sustained a renewed interest in the stock.

Checks by Nairametrics reveal the stock has gained a whopping 16% in November alone becoming one of the best performers this month for banking stocks.

The stock was trading for N19.30 when we checked on early trading on the 8th of November with over 200 million shares crossing.

The stock was also on net bid, meaning there were more buy orders than sell orders, an early barometer for higher share prices.

FBNH applied to the Nigerian Exchange Limited for the approval and listing of the rights issue of 8.97 billion units of ordinary shares at N15.50/share.

Meanwhile, the company still listed Femi Otedola as the single largest shareholder of the bank with 5.57% holdings out of the total outstanding shares of 38.5 billion. The stock has a free float of about 88.9%.

The billionaire was also named a non-executive director of the holding company and is currently on the board.

FBNHoldings Plc announced the release of its third-quarter financial statements for the period ending 30th September 2023.

The Group’s profit before tax was up 156.3% to N270.3 billion from N105.5 billion posted in 2022, driven by strong growth in interest income.

According to the group’s financial statements for nine months, the company’s profit after tax (PAT) was N236.4 billion, a 159,2% increase from the N91.2 billion recorded in the corresponding period in 2022

This is on the back of increasing inflation which the economy continues to struggle with. Headline inflation increased to 26.72%, representing a 0.92 %-point rise from the previous month’s 25.80%.

More to follow….