CBN and SEC Approve FCMB Group’s N147bn Rights Offer

The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have given approval for FCMB Group’s rights issue, which is valued at N147 billion.

This approval was announced in a statement on Monday, signed by the Company’s Secretary, Olufunmilayo Adedibu. It marks the second approval from the CBN in just a few days for a capital-raising initiative by banks this year.

The offer was oversubscribed by 33%, with a total of 42,800 investors participating. Of these, 92% subscribed through digital platforms, such as the bank’s mobile app, bringing in more than 39,000 new investors to FCMB Group.

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The total amount raised, verified by the regulators, was N147,508,464,568.60. Out of this, N144,559,788,701.30 was absorbed through the issuance of 19,802,710,781 shares at a price of N7.30 per share. Following this, the total post-offer issued shares now stand at 39,605,421,562.

FCMB also confirmed it has secured regulatory approval to use the proceeds from the public offer to strengthen the capital base of its banking subsidiary, First City Monument Bank (FCMB). With this additional capital, FCMB’s new capital base exceeds N240 billion, surpassing the minimum requirement for a national banking license.

The bank aims to retain its international banking license and is confident that it will achieve this with the subsequent phases of its capital-raising program.

In a statement, Group Chief Executive Mr. Ladi Balogun expressed gratitude to both existing and new investors for their strong support of the offer. He highlighted that the success of the offer reflects investor confidence in FCMB’s growth strategy and leadership, as well as trust in its commitment to meeting its goals.

He also thanked the CBN, SEC, and Nigerian Exchange Limited for their continued support, which helped make this milestone possible. Balogun noted that the success marks a significant step forward in FCMB’s efforts to create value for its shareholders and contribute to the economic growth of Nigeria and Africa. The bank remains focused on executing the next phases of its capital-raising program in 2025.

During a recent Extraordinary General Meeting, shareholders approved plans to raise an additional N340 billion in capital.