FCMB Group Plc has received shareholder approval to raise ₦340 billion in fresh capital aimed at strengthening its banking subsidiary, First City Monument Bank Limited, to meet the Central Bank of Nigeria’s international banking license requirements.
The decision was finalized during an extraordinary general meeting held in Lagos and virtually, with shareholders endorsing an increase in the authorized additional capital raise from ₦150 billion to ₦340 billion.
This move allows FCMB to utilize a broad range of financial instruments, including ordinary and preference shares, bonds, loans, and convertible securities.
Shareholders also approved the divestment of stakes in certain subsidiaries, with proceeds set for reinvestment in the banking unit. Additionally, they greenlit the acceptance of surplus funds from the oversubscribed public offer launched in July 2024, pending regulatory approvals.
To bolster its capital base further, the company’s issued share capital will increase from ₦19.8 billion, divided into 39.6 billion ordinary shares at 50 kobo each. FCMB will also raise up to $15 million (or its Naira equivalent) through a mandatory convertible loan targeted at select qualified investors.
“This is a critical milestone,” said Group Chief Executive Ladi Balogun, expressing gratitude for the confidence shareholders have shown in the company’s strategic direction.
FCMB Group recently reported robust financial results, with a 67% increase in profit before tax to ₦91.8 billion for the first nine months of 2024. A capital raise earlier in September was oversubscribed, reflecting strong investor confidence in the company’s growth trajectory.
Shareholders praised FCMB’s ability to generate impressive returns and exceed expectations, underscoring optimism about the company’s future.
With this latest approval, FCMB is well-positioned to enhance its capital structure, meet regulatory requirements, and sustain its growth momentum in Nigeria’s competitive banking sector.
