FCMB Group launches public offer to raise N110.9bn
FCMB Group PLC has unveiled a public offer aiming to generate N110.9 billion by issuing 15.197 billion shares at N7.30 per share.
This announcement was made by Group CEO, Ladi Balogun, during the “Facts Behind the Offer” presentation at the Nigerian Exchange (NGX) on Tuesday.
Balogun outlined that this public offer is the initial phase of a broader three-phased strategy to secure up to N397 billion in additional capital. This funding is intended to support the Group’s diversification plans, including the formation of a Technology Holding Company by 2026.
“The proceeds from this capital raise will primarily drive business growth, with a focus on lending to key sectors such as agriculture, SMEs, and non-oil exports,” Balogun stated.
The first phase, involving the public offer, is set to generate N150 billion, of which N110.9 billion will come from the issuance of 15.12 billion shares at N7.30 each. In addition, a private placement ranging between $40 million to $50 million is expected to close by the year’s end and convert next year. “The public offer will enable us to swiftly meet market demands while ensuring simplicity and speed in execution,” Balogun noted.
The second phase, according to Balogun, involves selling minority interests in one or two of FCMB’s subsidiaries to raise between N80 to N100 billion, thereby totaling approximately N250 billion. “By selling minority stakes, we avoid over-diluting our shareholders and recognize the undervalued potential of our subsidiaries,” he explained.
The final phase, slated for the end of 2025, will entail a private placement with identified potential investors. FCMB aims to complete all phases with less than 50 billion shares issued, targeting around 45 billion. “Our goal is to sustain and grow earnings per share for our investors despite the significant share issuance,” Balogun noted.
Balogun emphasized the importance of these sectors for Nigeria’s development. He highlighted that investments in technology will bolster cybersecurity, enhance service quality, and reduce financial and environmental costs. Significant funds will also be allocated to human capital development to ensure a robust leadership pipeline within the organization.
The decision to opt for a public offering over a rights issue was driven by the need for speed and simplicity, Balogun explained. He added that selling stakes in subsidiaries strategically allows FCMB to maintain control while injecting capital into the bank without excessive dilution.
The public offer, Balogun assured, is designed to be stress-free and open to all, with projections indicating an increase in the value of purchased shares.
This capital-raising initiative aligns with the Central Bank of Nigeria’s (CBN) new capitalization requirements announced in March, which mandated a ten-fold increase in minimum capital requirements for banks. FCMB, holding an international license, is required to raise N500 billion and currently needs N375 billion to maintain its license.
In his remarks, Jude Chiemeka, CEO of NGX, expressed confidence in FCMB’s capital-raising plans. He highlighted the Exchange’s efforts to ensure a seamless process and urged stakeholders and potential investors to leverage the NGX Invest platform to participate in the public offer.
“We have continued to deploy technology to deepen a digital Exchange while making onboarding hassle-free for every investor,” Chiemeka said. He emphasized the reliability of NGX platforms, citing their advanced technological mechanisms that prevent downtime.
The event also saw attendance from notable industry stakeholders, including Mr. Temi Popola, Group Managing Director and CEO of NGX Group; Olufemi Shobanjo, CEO of NGX Regulation; Olufemi Badeji, Executive Director, Corporate and Investment Banking at FCMB; Gbolahan Joshua, Executive Director and Group Chief Operating Officer; Oluro Dada, President of the Charter Institute of Stockbrokers; and Haruna Jalo-Waziri, CEO of CSCS.
