First HoldCo starts $1 billion share offer after CBN approval

First HoldCo Plc has started a N1.4 trillion ($1 billion) share offer after securing approval from the Central Bank of Nigeria, giving the parent company of First Bank of Nigeria a major source of fresh capital to expand its financial services businesses.

The company will offer 10.4 billion shares to investors, with the sale starting Monday, Olusegun Alebiosu, chief executive officer of First Bank, said in an interview.

Proceeds to strengthen capital 

First HoldCo will use the proceeds to strengthen the capital base of its banking business and expand into other financial services, including insurance underwriting and fintech, Alebiosu said. 

“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. 

The share sale follows a move by First HoldCo last year to transfer about a quarter of its shares to RC Investment Management Ltd., which served as a bridge holder after Barbican Capital Ltd. sold its stake in the company amid ownership and leadership disputes. 

First HoldCo later said it planned to sell the shares to the public once it received the necessary regulatory approvals. 

The stock has risen more than 8% over the past week, reaching N134 ($0.09), and has more than quadrupled since July 2025, when the shares previously held by Barbican Capital were transferred to RC Investment Management. 

The latest rally pushed First HoldCo above a N6 trillion ($4.4 billion) market capitalization, making it the first banking stock on the Nigerian Exchange to cross that level.

Earnings provide further support 

The planned capital raise comes after a strong first half for First HoldCo. The group reported pretax profit of N653.54 billion ($478.91 million) for the six months ended June 30, 2026, compared with N356.15 billion ($260.98 million) a year earlier. 

Higher operating income and lower credit-loss provisions helped lift earnings, with growth reported across several of the group’s businesses. 

Otedola increases First HoldCo stake

The capital raise also comes as billionaire and First HoldCo Chairman Femi Otedola continues to increase his ownership of the company. Otedola’s holding has risen from 9.99 billion shares to 11.77 billion shares, lifting his stake from 21.96% to 25.88%,

The increase has fueled speculation that Otedola, the company’s largest shareholder, could seek greater control if his stake eventually exceeds the 30% threshold.

First HoldCo targets broader growth

Headquartered in Lagos, First HoldCo traces its roots to First Bank, which was founded in 1894. The company, formerly known as FBN Holdings Plc, adopted the First HoldCo name in February 2025 and has interests spanning commercial banking, investment banking, asset management and insurance brokerage. 

The share sale gives First HoldCo another opportunity to strengthen its banking operations while building out its other financial services businesses.