Table of Contents
Key Points
- FCMB Group's oversubscribed public offer raised $95.2 million, exceeding its target by 33%, reflecting investor confidence in its growth strategy.
- 92% of the 42,800 investors subscribed digitally, showcasing strong demand for 19.8 billion new shares priced at N7.3 ($0.005) each.
- Funds will strengthen FCMB’s core banking operations, increasing paid-up capital to $155 million and meeting national banking license requirements.
FCMB Group, a Lagos-based financial services holding company led by Nigerian banking executive Ladi Balogun, has successfully completed an oversubscribed public offer, raising N147.5 billion ($95.2 million). The offering exceeded its target by 33 percent, reflecting strong investor confidence in the group’s growth strategy.
The public offer, approved by Nigeria’s Central Bank (CBN) and the Securities and Exchange Commission (SEC), attracted 42,800 investors, with 92 percent subscribing via digital platforms, including FCMB’s mobile app.
The bank issued 19.8 billion new shares, priced at N7.3 ($0.005) each, bringing in over 39,000 new investors—demonstrating rising interest in FCMB and its future prospects.
Capital raise to bolster core banking operations
The proceeds from the offering will strengthen FCMB’s flagship subsidiary, First City Monument Bank (FCMB Ltd.), increasing its paid-up capital and share premium to over N240 billion ($155 million). This not only meets regulatory requirements for a national banking license but also fortifies the group’s international banking status, reinforcing its strategic growth trajectory.
This successful capital raise marks the first phase of FCMB Group’s broader fundraising strategy, which has already received approval from the CBN. Additional initiatives are planned for 2025, designed to bolster the group’s global presence and further entrench its leadership within Africa’s financial services sector.
Ladi Balogun praises stakeholder commitment
CEO Ladi Balogun expressed his gratitude for the public offer’s success, stating, “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.”
He acknowledged the crucial support from the Central Bank of Nigeria, the Securities and Exchange Commission, and the Nigerian Exchange Limited (NGX), emphasizing their instrumental role in achieving this 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,” he added.
FCMB Group expands, reports strong profits
Under Ladi Balogun, FCMB Group has continued to diversify its offerings, operating across commercial and retail banking, investment banking, and asset and wealth management. Beyond Nigeria, the group maintains an international presence in the United Kingdom.
The public offer caps a strong year for FCMB Group. For the nine months ending Sept. 30, 2024, the group reported a profit of N82.4 billion ($51.4 million), a 68 percent increase from N49.2 billion ($30.8 million) during the same period in 2023.
The success of the public offer is a key milestone in FCMB Group’s journey to becoming a globally recognized financial services leader, rooted in Africa and poised for future growth.
