Alebiosu said in an interview that the money will be used to strengthen the bank's capital base and to help the holding company expand into insurance underwriting and fintech services. That push into new businesses is part of the reason the company chose to sell the shares rather than leave them with a single investor.
After announcing the transfer last year, First HoldCo said it would give the public a chance to buy those shares if it could obtain regulatory approval. The central bank gave its approval ahead of the announcement, clearing the way for the offer.
The path to this point explains why last year's ownership change was always seen as a step toward a broader sale rather than a permanent shift. The bridge arrangement was meant to keep the shares in a stable holding vehicle while the company pursued the necessary approvals. Barbican Capital sold its stake after a period of boardroom friction and leadership battles, and the public offer follows as First HoldCo tries to move past that disruption. By moving the block through RC Investment Management and then into public hands, First HoldCo has tried to settle that uncertainty while keeping a wide investor base.
Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter
The block being sold is roughly a quarter of First HoldCo, so the share sale will replace a single large holder with a much broader group of investors.
On the Nigerian Exchange Group, the share price climbed as much as 5.9% to an all-time high on the day the sale was announced. At 1:17 p.m. in Lagos, shares remained 3.1% higher, changing hands at 133.60 naira.
Since Barbican Capital's stake moved to RC Investment Management last July, First HoldCo's shares have surged more than fourfold. The market response reflects investor anticipation of the regulatory decision and the timing of the public offer.
"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.
For investors, the central detail is the size and purpose of the $1 billion raise. Should the offer finish as fast as Alebiosu predicts, that would signal sustained demand for shares of Nigerian banks.
The offer also tests the market's appetite for a financial holding company that wants to broaden its business beyond traditional banking. A rapid close would give First HoldCo a clearer path to deploying the funds and would underline the strength of investor interest in Nigerian bank shares.
Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets
