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FBN Holdings Plc, a leading financial services conglomerate, has crossed the N1 trillion market capitalization milestone on the Nigerian Exchange (NGX) following its announcement to divest from its merchant banking arm.
Investors have shown strong support for the group in the equities market as the parent company of FBNQuest Merchant Bank, FBNQuest Capital, FBNQuest Asset Management, FBNQuest Trustees, FBNQuest Funds, and FBNQuest Securities Ltd has gained renewed popularity. The divestment plan has bolstered investor confidence, resulting in a significant 32% increase in the company’s share price over the last seven trading sessions, rising from N22 to N29 per share by Friday.
At the close of trading, FBN Holdings’ 35.895 billion shares were valued at N1.04 trillion, marking a 31.81% week-on-week increase, driven by a fresh rally in the market.
FBN Holdings is set to sell its long-standing merchant banking business to the newly incorporated EverQuest Acquisition LLP for an undisclosed amount. This divestment has been well-received by the market, reflecting positively on investor sentiment. However, the group has faced internal challenges, leading to the postponement of its annual general meeting (AGM), which has been delayed indefinitely despite a looming recapitalization deadline for its flagship banking subsidiary, FirstBank of Nigeria Limited.
The group had previously announced plans to raise N350 billion in fresh capital after receiving shareholders’ approval at the AGM. FBN Holdings’ share price had seen a significant decline, trading at more than a 50% discount to its 52-week high, as early investors sought exits.
The merchant bank divestment announcement has revitalized investor interest, with analysts noting that the move signals strategic plans aimed at strengthening FBN Holdings’ market fundamentals and business agility.
The company’s share price performance is crucial as it will play a significant role in determining the success of the upcoming capital raise. Market analysts have emphasized that the decision to divest is a clear strategic move, as FBN Holdings faces a first-quarter 2026 deadline to recapitalize both First Bank of Nigeria and FBNQuest Merchant Bank Limited, which will put significant pressure on the group.
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