The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have granted approval for FCMB Group’s N147bn rights offer, marking a major achievement in the company’s capital-raising efforts.
This development was confirmed in a statement released on Monday by the Company Secretary, Olufunmilayo Adedibu. It also represents the second approval from the CBN in recent days for a bank’s capital-raising initiative this year.
The rights offer, which attracted 42,800 investors, was oversubscribed by 33 per cent. Impressively, 92 per cent of investors utilised digital channels such as the bank’s mobile app, contributing to the addition of over 39,000 new shareholders to the FCMB Group.
Regulators verified the total funds raised at N147,508,464,568.60, out of which N144,559,788,701.30 was absorbed through the issuance of 19,802,710,781 ordinary shares at N7.30 per share. This brings the group’s total post-offer issued shares to 39,605,421,562.
FCMB stated that the net proceeds from the public offer have been approved for strengthening the capital base of its banking subsidiary, First City Monument Bank. Following this injection, the group’s capital base now exceeds N240bn, surpassing the minimum requirement for a national banking licence.
The company also disclosed plans to retain its international banking licence, with subsequent phases of its capital program slated for 2025.
Commenting on the successful public offer, the Group Chief Executive, Mr. Ladi Balogun, expressed gratitude to investors and regulators, stating, “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 fulfil our commitments and realise this potential.”
He also extended appreciation to regulatory bodies, adding, “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.”
At a recent Extraordinary General Meeting, shareholders approved plans to raise an additional N340bn as part of the group’s broader capital-raising program.
