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FCMB Group has proposed to raise N110 billion by issuing 15,197,289,219 ordinary shares at N7.30 per share.
This was revealed by the Chief Executive Officer of First City Monument Bank, Ladi Balogun, during the 'Facts Behind the Offer' presentation by FCMB Group Plc 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 stated that the bank planned to raise N397bn through the selling of minority stakes in two of its subsidiaries, including the pension business and Credit Direct in 2025.
He said the bank expects to raise between N89 million and N90 million from these sales, which will be injected into the bank to promote capital.
He said FCMB is also in discussions with several offshore investors for a private placement, which will be in the form of preference shares in the holding company, downstreamed as equity to the bank, helping the bank achieve its target of raising N397 billion.
The bank has an aspiration to move to Tier 1.
“The first phase is what we’re currently executing. We’ll be raising a total of N150bn through both a public offer and a small private placement. This phase should be concluded by October this year,” he added.
Regarding the capital raise, Balogun mentioned that the second phase would involve selling minority interests in one or two of the bank’s subsidiaries, projected to generate between N80bn and N100bn, which would help raise the group’s total capital to approximately N250bn.
“The second phase will be selling minority interests in one or two of our subsidiaries, where we hope to generate between N80bn and N100bn. This will bring us to about N250bn. The third phase will involve a private placement towards the end of next year,” he remarked.
He stated that the proceeds from this capital raise would be allocated to drive business growth, including expanding lending to critical sectors such as agriculture, small and medium-scale businesses, and non-oil exports.
According to Balogun, the bank prioritises investment in technology to enhance cybersecurity, improve service quality, and reduce operational costs.
He added that the bank planned to invest in human capital to support its growth and leadership pipeline.
The Chief Executive Officer of Nigerian Exchange Limited, Jude Chiemeka, emphasised the exchange's commitment to the green economy and technological advancements, including creating a system to allow investors access to instruments with measurable Environmental, Social, and Governance impacts, and a robust platform that enhances corporate governance and supports seamless trading.
He said the exchange is also committed to providing financial education to its investors.
The Chief Executive Officer of NGX Group, Temi Popoola, underscored the significance of digital transformation in the exchange's operations, stating that the exchange had embraced digital solutions that enhanced efficiency and transparency since the start of the recapitalisation process.
In March 2024, the CBN ordered banks in the country to raise fresh capital, increasing the capital base for commercial lenders with international licences to N500bn, those with national authorisation to N200bn, and banks with regional authorisation and merchant lenders to N50bn.
