FCMB needs N260bn more after first phase of capital raise
First City Monument Bank now needs an additional N260 billion to retain its international banking licence after its recent public offer saw its capital base rise to N240 billion.
Its parent company, FCMB Group Plc, announced on Monday the successful completion of its public offer, through which N147.51 billion was raised and verified by the regulatory authorities.
The offer was oversubscribed by 33%, attracting 42,800 investors with 92% subscribing via more convenient digital channels such as the bank’s mobile app and ushering in over 39,000 new investors to the FCMB Group, according to a statement.
It said N144.56 billion was absorbed through the issuance of 19,802,710,781 ordinary shares at N7.30 per share bringing total post-offer issued shares to 39,605,421,562 shares.
FCMB said regulatory approvals have also been received “to downstream the net proceeds of the public offer from the holding company to the banking subsidiary”.
“This raises the paid-up share capital and share premium, being the eligible capital base as per CBN’s recapitalisation criteria, of the banking subsidiary, First City Monument Bank Limited, to over N240 billion, which exceeds the minimum requirement for a national banking licence,” it said.
The group said the second and third phases of its capital programme, currently underway, “are aimed at ensuring First City Monument Bank Limited meets the minimum capital requirement to retain its international banking license in line with its vision to be a global financial services group of African origin, renowned for leadership in its chosen markets”.
Ladi Balogun, chief executive of FCMB Group, said: “We are grateful to our existing shareholders and new investors for coming out strongly to support this offer. The success of the public offer reflects significant investor confidence in our strategy and growth potential, as well as trust in the board, leadership and our people to fulfill our commitments and realize this potential.
“We also extend our profound appreciation to the Central Bank of Nigeria, the Securities and Exchange Commission and the Nigerian Exchange Limited (NGX) for their continued foresight, innovation, guidance and support which has been instrumental in achieving this significant milestone. This marks an important step forward in our journey to unlock new opportunities, create value for our shareholders, and contribute to the economic growth of Nigeria and Africa. We remain committed to executing the subsequent phases of our capital-raising program in 2025.”
