The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have approved FCMB Group’s rights offer of N147 billion. This announcement was made in a statement signed on Monday by the Company Secretary, Olufunmilayo Adedibu.
This marks the second approval from the CBN within days for the initial phase of capital-raising activities by banks this year. The offer was oversubscribed by 33%, attracting 42,800 investors. Remarkably, 92% of the subscriptions occurred through convenient digital channels, such as the bank’s mobile app, which brought over 39,000 new investors to the FCMB Group.
The total amount raised, as verified by the regulators, is N147,508,464,568.60. Additionally, N144,559,788,701.30 was generated through the issuance of 19,802,710,781 ordinary shares priced at N7.30 per share, increasing the total number of post-offer issued shares to 39,605,421,562.
FCMB indicated that it has also received regulatory approval to utilize the net proceeds from the public offer to strengthen the capital base of its banking subsidiary, First City Monument Bank.
Following this injection of funds, FCMB’s new capital base exceeds N240 billion, surpassing the minimum requirement for a national banking license. The firm aims to retain its international banking license, and the subsequent phases of FCMB Group’s capital program will help achieve this goal.
Commenting on the successful completion of the public offer, Group Chief Executive Mr. Ladi Balogun stated, “We are grateful to our existing shareholders and new investors for showing strong support for this offer. The success of the public offer demonstrates significant investor confidence in our strategy and growth potential, as well as trust in our board, leadership, and personnel to fulfill our commitments and realize this potential.” He added, “We also extend our profound appreciation to the Central Bank of Nigeria, the Securities and Exchange Commission, and the Nigerian Exchange Limited for their continued foresight, innovation, guidance, and support, which have been instrumental in achieving this significant milestone.
This is an important step forward in our journey to unlock new opportunities, create value for our shareholders, and contribute to the economic growth of Nigeria and Africa. We remain committed to executing the subsequent phases of our capital-raising program in 2025.” At a recently held Extraordinary General Meeting, shareholders approved plans to raise an additional N340 billion in capital.
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