Bank Recapitalisation: FCMB Raises N147.5bn Public Offer

FCMB Group Plc raised N147.5 billion through its public offer exercise and recorded 33 per cent oversubscription.

The group announced the successful completion of its public offer, following the approvals of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

Company secretary, Olufunmilayo Adedibu, stated on Monday that the offer was oversubscribed by 33 per cent, attracting 42,800 investors with 92 per cent subscribing via more convenient digital channels such as the bank’s mobile app and ushering in over 39,000 new investors to the FCMB Group.

FCMB Group said “the total amount raised and verified by the regulatory authorities is N147.508 billion and N144.560 billion was absorbed through the issuance of 19.803 billion ordinary shares at N7.30 per share bringing total post-offer issued shares to 39.605 billion shares.

“Regulatory approvals have also been received to downstream the net proceeds of the public offer from the holding company to the banking subsidiary. This raises the paid-up share capital and share premium, being the eligible capital base as per CBN’s recapitalisation criteria, of the banking subsidiary, First City Monument Bank Limited, to over N240 billion, which exceeds the minimum requirement for a national banking license.”

It added that “subsequent phases (2 and 3) of FCMB Group’s capital program, which are currently underway, are aimed at ensuring First City Monument Bank Limited meets the minimum capital requirement to retain its international banking license in line with its vision to be a global financial services group of African origin, renowned for leadership in its chosen markets.”

Speaking on the successful completion of the public offer, the group chief executive, FCMB Group, Ladi Balogun said, “We are grateful to our existing shareholders and new investors for coming out strongly to support this offer.”

He pointed out that “the success of the public offer reflects significant investor confidence in our strategy and growth potential, as well as trust in the board, leadership and our people to fulfill our commitments and realize this potential.

“We also extend our profound appreciation to the Central Bank of Nigeria, the Securities and Exchange Commission and the Nigerian Exchange Limited (NGX) for their continued foresight, innovation, guidance and support which has been instrumental in achieving this significant milestone.”

Balogun added that “this marks 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 programme in 2025.”