Nigeria: NGX Supports FCMB’s N111 Billion Capital Raise

The Nigerian Exchange Limited (NGX) has endorsed FCMB Group Plc’s plan to raise approximately N110.9 billion through a public offering.

FCMB Group’s public offer, which commenced on July 29, involves the issuance of 15.197 billion shares priced at N7.30 per share. The offer is set to close on September 4.

In a statement released on Thursday, NGX confirmed its backing for FCMB’s capital raise, which is intended to enhance the group’s operational capacity and support its growth strategies.

Ladi Balogun, FCMB Group Chief Executive, highlighted that despite challenging economic conditions, the bank has continued to deliver robust performance metrics, including revenue growth and profitability.

Temi Popoola, Group Chief Executive Officer of the Nigerian Exchange Group, praised FCMB’s initiative, noting that the exchange fully supports the capital raise. Popoola pointed out that FCMB’s digital innovations in connection with the public offer align with NGX’s digital transformation objectives.

Popoola further emphasized FCMB’s achievements, such as increased net income and expanded digital banking services. He remarked that the group’s innovative strategies and resilient portfolio have enabled it to navigate economic challenges effectively while focusing on growth and sustainability.

“We are confident that FCMB will receive strong support from the entire capital market community,” Popoola stated.

Jude Chiemeka, Chief Executive Officer of the Nigerian Exchange Limited, also expressed optimism about the capital raise. He reiterated the exchange’s commitment to facilitating a smooth process and highlighted FCMB’s strategic use of digital banking services to enhance shareholder value.

According to reports from PUNCH, FCMB Group’s profit before tax surged by 192.6% to N31.3 billion in the first quarter of 2024. The group’s growth was led by investment banking, which saw a 228.1% increase, followed by consumer finance, banking group, and investment management segments, which grew by 165.4%, 157.2%, and 74.3%, respectively.