FCMB Group To Seek Board Approval For N340bn Capital Raise  

FCMB Group Plc has announced plans to seek approval from its board to raise ₦340 billion at its upcoming Annual General Meeting (AGM), slated for December 19, 2024.

This new capital raise far surpasses the previously approved ₦150 billion and aligns with the Central Bank of Nigeria’s (CBN) recent directive on recapitalisation.

The announcement, signed by the company secretary, Mrs. Olufunmilayo Adedibu, was recently disclosed on the Nigerian Exchange (NGX) platform. The AGM will address a series of resolutions intended to reinforce the group’s strategic goals and long-term sustainability.

Among the key proposals is a significant increase in the company’s authorised share capital from ₦150 billion to ₦340 billion. This will be achieved through the issuance of various financial instruments, including shares, convertible and non-convertible notes, loans, and bonds, to be offered both locally and internationally via public offerings, private placements, or rights issues.

Additionally, FCMB plans to divest part of its holdings in one or more subsidiaries, with proceeds earmarked for reinvestment into First City Monument Bank Limited, its flagship banking subsidiary. Another major resolution involves seeking board approval to accept surplus funds from the oversubscription of the group’s public offer, which closed on September 4, 2024, reflecting strong investor confidence in its future.

FCMB is also exploring the issuance of a mandatory convertible loan valued at up to $15 million. This loan will eventually be converted into ordinary shares, further strengthening the group’s equity position. The proposed share capital increase will involve issuing 39.6 billion new ordinary shares, raising the current share capital from ₦19.8 billion.

The AGM agenda will include additional resolutions, such as obtaining approval for listing FCMB securities on the NGX and other international markets, appointing professional advisers for the capital raise, and granting the company secretary authority to finalize regulatory filings with the Corporate Affairs Commission (CAC).

These measures come in response to the Central Bank of Nigeria (CBN’s) recapitalisation mandate issued in March 2024, which requires banks to meet higher capital thresholds by March 31, 2026. Earlier this year, FCMB shareholders approved an initial ₦150 billion capital raise, which was launched in July 2024 and met with an oversubscription, showcasing robust market confidence in the bank’s growth prospects.

Currently trading at ₦9.25 per share, FCMB’s stock reflects investor optimism as the group positions itself to meet regulatory requirements and enhance its financial resilience. The December AGM is expected to be a decisive step for FCMB in fortifying its balance sheet and expanding its presence in the banking sector.