By Barnabas Esiet.
FCMB Group PLC has launched a public offer to raise N110.9 billion in additional capital through the issuance of 15.197 billion shares at N7.30 per share. This move is part of the bank’s comprehensive plan to meet the Central Bank of Nigeria’s (CBN) capitalization requirements.
The Group CEO, Ladi Balogun, explained that the public offer is the first phase of a three-phased approach to raise up to N397 billion in additional capital.
The second phase involves selling minority interests in one or two of its subsidiaries, aiming to raise between N80 to N100 billion.
The final phase, set for the end of 2025, will involve a private placement with identified potential investors.
The proceeds from this capital raise will primarily drive business growth, focusing on lending to key sectors such as agriculture, SMEs, and non-oil exports.
Investments in technology will also bolster cybersecurity, enhance service quality, and reduce both financial and environmental costs.
Significant funds will be allocated to human capital development, ensuring a robust leadership pipeline within the organization.
Balogun emphasized the need for speed and simplicity in opting for a public offering over a rights issue.
He also noted that selling stakes in subsidiaries was strategic, allowing FCMB to maintain control while injecting capital into the bank without excessive dilution.
The CEO of NGX, Jude Chiemeka, expressed confidence in FCMB’s capital raising plans and urged stakeholders and potential investors to leverage the NGX Invest platform to partake in the public offer.
He highlighted the Exchange’s efforts in ensuring a seamless process and deploying technology to drive a digital Exchange.
This capital raise is a strategic move by FCMB to meet regulatory requirements, drive business growth, and invest in technology and human capital development.
The success of this offer will be crucial in achieving the bank’s goals and sustaining earnings per share for investors.
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