FCMB Group Plc has received shareholder approval for a capital raise of ₦340 billion, marking a pivotal step in the company’s strategic expansion and compliance with regulatory requirements. The decision was finalized during an extraordinary general meeting held on December 19, 2024, in Lagos, with participation both in-person and virtually.
The capital raise will primarily support the banking subsidiary, First City Monument Bank Limited, in meeting the Central Bank of Nigeria’s (CBN) international license requirements. This initiative increases the authorized additional capital from ₦150 billion to ₦340 billion, allowing the group to leverage a mix of financial instruments, including ordinary and preference shares, convertible and non-convertible securities, bonds, and loans.
During the meeting, shareholders also approved the divestment of stakes in one or more subsidiaries, with proceeds allocated for reinvestment in the banking arm. Surplus funds from the oversubscribed public offer launched in July 2024 will also be utilized, pending regulatory approvals.
An increase in the company’s issued share capital from ₦19.8 billion, divided into 39.6 billion ordinary shares of 50 kobo each, was approved, alongside the authorization to raise up to $15 million (or its naira equivalent) through a mandatory convertible loan targeting qualified investors.
Strategic Milestone
Speaking on the development, FCMB Group’s Chief Executive, Ladi Balogun, hailed the move as a critical milestone. “This underscores shareholder confidence in FCMB Group’s strategic direction and our ability to deliver value in a challenging financial landscape,” he said.
Impressive Growth and Investor Confidence
FCMB Group has shown robust financial performance, with a 67% increase in profit before tax to ₦91.8 billion for the first nine months of 2024. An earlier capital raise in September was oversubscribed, further reflecting investor trust in the company’s growth trajectory.
Shareholders lauded the Group’s leadership for its foresight and ability to exceed expectations, reaffirming their confidence in its capacity to generate strong returns.
Positioning for the Future
With the approved capital raise and strategic reinvestment initiatives, FCMB Group is poised to strengthen its position as a leader in Nigeria’s banking sector while aligning with regulatory demands and global banking standards. This move reaffirms its commitment to delivering sustainable growth and value for shareholders.