FirstHoldCo, the parent company of First Bank of Nigeria, has emerged as the country's most valuable financial institution, with a market capitalisation of N6.09 trillion, and is now seeking to raise N1.4 trillion through a public share offering approved by the Central Bank of Nigeria.

The sale, which covers a block of 10.4 billion shares, opened to investors on Monday. Chief Executive Officer Olusegun Alebiosu said the level of interest in the offering had already exceeded expectations within hours of opening.

"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," Alebiosu said.

Background to the share offering

The sale brings to a close a drawn-out corporate dispute. Last year, Barbican Capital Ltd. sold off its large equity position in the lender during a period of leadership and ownership conflict.

To prevent instability, FirstHoldCo moved a quarter of its total shares to RC Investment Management Ltd., which held the stake on a temporary basis while the company awaited regulatory clearance to sell the block to the general public.

According to a Bloomberg Report, the funds raised will serve a dual purpose: bolstering the capital base of the bank's core lending business and financing the holding company's push into insurance underwriting and financial technology services.

Markets react to the news

Investors welcomed the start of the sale with enthusiasm. FirstHoldCo shares rose 3.43 per cent to close at N134 at the end of Monday's trading session, reflecting broad confidence in the group's expansion plans.

The N1.4 trillion ($1 billion) target marks one of the largest capital raises by a Nigerian financial institution in recent memory and signals FirstHoldCo's ambition to diversify well beyond traditional banking.