FCMB raises N144.6bn from public offer, meets CBN’s new capital base

FCMB raises N144.6bn from public offer, meets CBN’s new capital base

By Fly Cable News

In a move to meet the Central Bank of Nigeria (CBN) capital requirement, FCMB Group Plc has announced that it raised N144.66 billion from Nigeria capital market through the public offer.

The Group had sought shareholders’ approval to raised N110.94billion but eventually settled for N144.6 billion as it announced the result of the offer for subscription of 15,197,289,219 ordinary shares of 50 kobo each at N7.30 per share on the Nigerian Exchange Limited (NGX) on Monday.

The Group had issued 15,197,282,219 ordinary shares of 50 kobo each at N7.30 per ordinary share of N0.50kobo each.

According to the outcome of the rights issue, 42,839 applications for 20,407,337,982 ordinary shares valued at N148.973,567,268.60 were received and processed.

The lender announced 42,826 applications for 20,402,782,982 Ordinary Shares valued at N48,940,315,768.60 were confirmed as being valid and processed accordingly- the offer was therefore 134.3 per cent subscribed.

“39 Applications for 200,699,000 Ordinary Shares valued at N465.1 were rejected having not complied with the terms of the offer and/or being disqualified by the CCBN following the completion of capital verification on December 10, 2024.

“42,800 Applications for 20,206,638,982 Ordinary Shares valued at N147,508,464,568.60 were confirmed as being valid and verified by the CBN. All Applications in the range of 1,000 to 750,000,000 Ordinary Shares were allotted in full, 100per cent of the shares applied for.

“All Applications in the range of 750,000,001 to over 3,000,000,000 Ordinary Shares were allotted 96.74 per cent of the shares applied for.

“Accordingly, 19,802,710,781 Ordinary Shares – being the shares approved by FCMB Group’s shareholders on May 24, 2024 – valued at N144,559,788,701.30 have been allotted to 42,800 subscribers following CBN Capital Verification

“Following the approval of the Securities & Exchange Commission, FCMB Group is allotting a total of 19,802,710,781 Ordinary Shares of 50 kobo each.

“The offer was therefore 100 per cent of the upsized offer including the oversubscription of 4,605,421,562 ordinary shares.”

The Group had secured shareholder approval for a N340 billion capital raise. The approval, granted during an Extraordinary General Meeting (EGM) held in Lagos and virtually, is crucial for its banking subsidiary, First City Monument Bank Limited, to comply with the CBN’’s international license requirements.

The approved measures include increasing the authorized additional capital raise from N150 billion to N340 billion, which empowers the Group to explore a diverse mix of financial instruments, such as ordinary and preference shares, convertible and non-convertible securities, bonds, and loans.

Shareholders also endorsed the divestment of stakes in one or more subsidiaries, with proceeds earmarked for reinvestment in the banking subsidiary, and the acceptance of surplus funds arising from oversubscription of the public offer launched in July 2024, subject to regulatory approvals.

Additionally, the meeting approved an increase in the company’s issued share capital from N19.8 billion divided in 39.6 billion ordinary shares of 50k (Fifty Kobo) each while authorizing the raise of up to $15 million (or its Naira equivalent) via a mandatory convertible loan targeted at select qualified investors.

“This is a critical milestone,” said Group Chief Executive Ladi Balogun, emphasizing shareholder confidence in FCMB Group’s strategic direction.

FCMB Group reported a 67per cent growth in nine-month profit before tax to N91.8 billion. An earlier capital raise in September was oversubscribed, showing investor confidence in the company’s growth prospects.

Shareholders expressed confidence in the company’s trajectory, applauding its ability to generate robust returns and exceed expectations.