Recapitalisation: FCMB Group Opens N160bn Public Offer For International Licence Renewal

FCMB Group Plc has commenced a N160 billion public share sale to strengthen its banking subsidiary and meet the Central Bank of Nigeria’s new N500 billion minimum capital requirement for international banks.

The offering of 16 billion shares at N10 each runs until November 6, 2025. Proceeds will recapitalise First City Monument Bank Limited and help the lender retain its international licence ahead of the March 31, 2026, deadline from the Central Bank of Nigeria (CBN).

The raise follows a N147.5 billion share sale in 2024, the first in 16 years. This 2024 share sale was oversubscribed by 33 per cent, with 42,800 investors participating, 92 per cent through digital channels. Analysts expect momentum to carry into this second phase of FCMB’s three-stage recapitalisation plan.

FCMB Group posted robust growth, with group profit before tax rising at a 72 per cent compound annual rate between 2022 and 2025. Non-bank subsidiaries delivered a 61 per cent PBT CAGR, led by Credit Direct Finance Company Limited, Nigeria’s largest non-bank lender, and FCMB Capital Markets, which topped the FMDQ fixed income league table for bond listing and commercial papers in the first half of 2025.

Groupwide digital initiatives continue to underpin growth, with digital revenues growing at more than 58 per cent annually since 2022, now accounting for 13.9 per cent of gross earnings. As of June 2025, digital lending stood at 9 per cent of the loan book.

At a 2025 estimated price-to-book ratio below 0.6x, FCMB stock trades at what analysts describe as a rare mix of deep value and high growth.

Following the completion of this share sale, the group plans to conclude the sale of minority stakes in two subsidiaries, with proceeds also injected into the bank. This will lift qualifying core capital beyond N500 billion and close its recapitalisation programme.