Nigeria: CBN, SEC Approve FCMB Group’s ₦147bn Rights Offer

The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have granted approval for FCMB Group’s ₦147 billion rights offer, marking a significant milestone in the financial institution’s capital-raising efforts.

This announcement was made in a statement signed by the Group’s Company Secretary, Olufunmilayo Adedibu, on Monday. The approval follows closely on the heels of another recent CBN endorsement for the first tranche of Nigerian banks’ capital-raising initiatives this year.

Oversubscription and Investor Participation

The rights offer saw remarkable investor interest, with a 33% oversubscription, attracting 42,800 investors. Notably, 92% of subscribers utilized digital channels, such as FCMB’s mobile app, which facilitated the onboarding of over 39,000 new investors into the Group.

Regulatory verification confirmed that ₦147,508,464,568.60 was raised, with ₦144,559,788,701.30 absorbed through the issuance of 19,802,710,781 ordinary shares at ₦7.30 per share. This brings FCMB’s total issued shares post-offer to 39,605,421,562.

Strengthening Capital Base

FCMB stated that regulatory approvals have also been secured to allocate the net proceeds of the offer to strengthen the capital base of its banking subsidiary, First City Monument Bank. With the additional funding, FCMB Group’s capital base now exceeds ₦240 billion, surpassing the minimum requirement for a national banking license.

The Group also reiterated its commitment to retaining its international banking license, which will be supported by subsequent phases of its capital-raising program.

Leadership Remarks

Group Chief Executive Ladi Balogun expressed gratitude for the overwhelming support from both existing shareholders and new investors.

“We are grateful to our existing shareholders and new investors for strongly supporting this offer. The success of the public offer reflects significant investor confidence in our strategy and growth potential, as well as trust in our leadership and people to deliver on our commitments,” Balogun said.

He also acknowledged the pivotal roles played by the CBN, SEC, and the Nigerian Exchange Limited in facilitating the process, highlighting their foresight and innovation.

“This milestone marks a significant step forward in our journey to unlock new opportunities, create value for our shareholders, and contribute to Nigeria and Africa’s economic growth. We remain committed to executing subsequent phases of our capital-raising program in 2025,” he added.

During a recent Extraordinary General Meeting, FCMB shareholders approved the Group’s plan to raise an additional ₦340 billion as part of its long-term capital strategy. This aligns with FCMB’s vision of bolstering its position in the financial sector while driving economic development in Nigeria and beyond.