FCMB Group Secures Regulatory Approvals and Successfully Concludes N147 Billion Rights Offer, Solidifying its Capital Base and Charting a Course for Future Growth
FCMB Group, a leading financial services institution in Nigeria, has announced the successful completion of its N147 billion rights offer, marking a significant milestone in the company’s growth trajectory. The rights offer, which received overwhelming support from both existing and new investors, garnered subscriptions exceeding the initial target by 33%, signifying strong investor confidence in FCMB Group’s strategic vision and future prospects. The offer attracted a diverse investor base, including over 42,800 participants, with a remarkable 92% utilizing digital channels such as the bank’s mobile app for subscription, further highlighting the growing adoption of digital platforms in financial transactions. The resounding success of the rights offer underscores the trust placed in FCMB Group’s leadership, management team, and overall corporate governance, as investors recognize the company’s potential for sustained growth and value creation.
The rights offer received the necessary regulatory approvals from prominent Nigerian financial authorities, including the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). These approvals, which followed a thorough review process, demonstrate the regulators’ confidence in FCMB Group’s financial soundness, compliance with regulatory requirements, and the strategic rationale behind the capital-raising initiative. The approvals pave the way for FCMB to strengthen its capital base, enhance its financial resilience, and expand its operational capabilities, further solidifying its position as a key player in the Nigerian financial landscape. The approvals also demonstrate the regulators’ commitment to fostering a stable and robust financial sector, promoting investor confidence, and supporting the growth of well-managed financial institutions.
The net proceeds from the rights offer, totaling N144.56 billion, will be primarily utilized to bolster the capital base of FCMB’s banking subsidiary, First City Monument Bank. This capital injection will significantly enhance the bank’s financial strength, enabling it to meet the stringent regulatory capital requirements for a national banking license and maintain its international banking license as it progresses towards its capital raise program goals. With the infusion of new capital, First City Monument Bank’s total capital base will exceed N240 billion, providing a robust foundation for future growth and expansion. This enhanced capital position will empower the bank to pursue strategic initiatives, expand its lending capacity, invest in technology and innovation, and further enhance its product and service offerings, ultimately benefiting its customers and stakeholders.
The successful completion of the rights offer aligns with FCMB Group’s broader capital-raising strategy, which aims to raise a total of N340 billion in additional capital. This ambitious plan, approved by shareholders at a recent Extraordinary General Meeting, underscores FCMB Group’s commitment to long-term growth and its proactive approach to strengthening its financial position. The additional capital will provide FCMB Group with the financial resources to capitalize on emerging opportunities, expand into new markets, and further enhance its competitive edge in the dynamic financial services industry. The proactive pursuit of capital strengthening demonstrates the company’s commitment to maintaining a robust financial foundation, ensuring long-term sustainability, and creating value for its shareholders.
Mr. Ladi Balogun, Group Chief Executive of FCMB Group, expressed his gratitude to the investors who participated in the rights offer, acknowledging their confidence in the company’s growth potential and strategic direction. He also extended his appreciation to the regulatory bodies, including the CBN, SEC, and the Nigerian Exchange Limited, for their invaluable support and guidance throughout the process. Mr. Balogun emphasized that the successful completion of the rights offer marks a significant step forward in FCMB Group’s journey to unlock new opportunities, create value for shareholders, and contribute to the economic development of Nigeria and the wider African region. He reiterated the company’s commitment to executing the subsequent phases of its capital-raising program in 2025, further solidifying its position as a leading financial services provider.
In conclusion, the successful completion of FCMB Group’s N147 billion rights offer, coupled with the regulatory approvals obtained, represents a major achievement for the company, strengthening its capital base, solidifying investor confidence, and positioning it for future growth. The overwhelming support from investors and the recognition from regulatory authorities underscore FCMB Group’s sound financial standing, strategic vision, and commitment to creating value for its stakeholders. With the enhanced capital position, FCMB is well-equipped to pursue its growth objectives, expand its operations, and contribute to the economic development of Nigeria and the broader African region. The successful execution of the rights offer signifies a pivotal moment in FCMB Group’s journey, setting the stage for continued success and reinforcing its position as a prominent player in the financial services industry.
