FCMB Group has unveiled plans to raise N110 billion by issuing 15,197,289,219 ordinary shares of N0.50 each at N7.30 per share. This announcement was made by the Chief Executive Officer of First City Monument Bank, Ladi Balogun, during the “Facts Behind the Offer” presentation at the Nigerian Exchange Limited on Tuesday.
Balogun explained that the public offer, expected to conclude by October, would be complemented by a private placement. Looking ahead, he revealed that the bank plans to raise N397 billion in 2025 by selling minority stakes in two of its subsidiaries, including the pension business and Credit Direct.
“We anticipate raising N89 billion to N90 billion from these sales, which will be injected into the bank to promote capital,” Balogun stated.
He also disclosed that FCMB is in discussions with several offshore investors for a private placement. “This will be in the form of preference shares in the holding company, downstreamed as equity to the bank, helping us achieve our target of raising N397 billion. We have an aspiration to move to Tier 1.”
“The first phase is what we’re currently executing. We’ll be raising a total of N150 billion through both a public offer and a small private placement. This phase should be concluded by October this year,” he added.
Balogun mentioned that the second phase of the capital raise would involve selling minority interests in one or two of the bank’s subsidiaries, projected to generate between N80 billion and N100 billion, which would help raise the group’s total capital to approximately N250 billion.
“The second phase will be selling minority interests in one or two of our subsidiaries, where we hope to generate between N80 billion and N100 billion. This will bring us to about N250 billion. The third phase will involve a private placement towards the end of next year,” he remarked.
The proceeds from this capital raise will be allocated to drive business growth, including expanding lending to critical sectors such as agriculture, small and medium-scale businesses, and non-oil exports. Investment in technology is also a priority, aiming to enhance cybersecurity, improve service quality, and reduce operational costs. Additionally, the bank plans to invest in human capital to support its growth and leadership pipeline.
Chief Executive Officer of Nigerian Exchange Limited, Jude Chiemeka, emphasized the exchange’s commitment to the green economy and technological advancements. “We have created a system to allow our investors access to instruments with measurable Environmental, Social, and Governance impacts. This is part of our contribution to the green economy,” Chiemeka stated.
He further highlighted the role of technology in NGX’s strategy, saying, “Beyond our green initiatives, we have a robust platform that enhances corporate governance and supports seamless trading. Our investments in technology will ensure that brokers can trade from the comfort of their homes, even amid any disruptions.”
Chiemeka declared that the exchange is committed to providing financial education to its investors to empower them to make informed decisions and navigate the market more effectively.
Chief Executive Officer of NGX Group, Temi Popoola, underscored the significance of digital transformation in the exchange’s operations. “A lot of activities are changing digitally in our markets. Since the start of the recapitalisation process, the exchange has embraced digital solutions that enhance efficiency and transparency,” Popoola stated.
In March 2024, the Central Bank of Nigeria ordered banks in the country to raise fresh capital, increasing the capital base for commercial lenders with international licenses to N500 billion, those with national authorization to N200 billion, and banks with regional authorization and merchant lenders to N50 billion.
