FCMB Group says share offer oversubscribed 33%

FCMB Group Plc, which owns FCMB bank, has announced the successful completion of its public offer, raising ₦147.5 billion with an oversubscription of 33%.

The offer, approved by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), attracted 42,800 investors, with 92% opting for digital channels such as the bank’s mobile app. The offer brought over 39,000 new investors into FCMB Group’s shareholder base.

The ₦144.56 billion verified by regulatory authorities led to the issuance of 19.8 billion ordinary shares at ₦7.30 per share, bringing FCMB Group’s total issued shares to 39.6 billion.

The funds raised will be downstreamed to First City Monument Bank Limited, the Group’s banking subsidiary, bolstering its capital base to over ₦240 billion. This exceeds the Central Bank of Nigeria’s minimum requirement for a national banking license.

“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,” group chief executive Ladi Balogun said in a statement.

Mr Balogun said the achievement marks a critical step in FCMB Group’s ongoing capital-raising program, designed to meet the recapitalization criteria for retaining its international banking license. Subsequent phases are expected in 2025 as the Group advances toward its vision of becoming a global financial services leader of African origin.

Here is the breakdown of the offer:

• 42,839 Applications for 20,407,337,982 Ordinary Shares valued at ₦148,973,567,268.60 were received and processed.
• 42,826 Applications for 20,402,782,982 Ordinary Shares valued at ₦148,940.315,768.60 were confirmed as being valid and processed accordingly – the Offer was therefore 134.3% subscribed
• 39 Applications for 200,699,000 Ordinary Shares valued at ₦1,465,102,700. OO were rejected having not complied with the terms of the Offer and/or being disqualified by the CBN following the completion of Capital Verification on December 10, 2024.
• 42,800 Applications for 20,206,638,982 Ordinary Shares valued at ₦147,508,464,568.60 were confirmed as being valid and verified by the CBN
• All Applications in the range of 1,000 to 750,000,000 Ordinary Shares were allotted in full, 100% of the shares applied for.
• All Applications in the range of 750,000,001 to over 3,000,000,000 Ordinary Shares were allotted 96.74% of the shares applied for.
• Accordingly, 19,802,710,781 Ordinary Shares – being the shares approved by FCMB Group’s shareholders on May 24, 2024 – valued at ₦144,559,788,701.30 have been allotted to 42,800 subscribers following CBN Capital Verification
• Following the approval of the Securities & Exchange Commission, FCMB Group is allotting a total of 19,802,710,781 Ordinary Shares of 50 kobo each.
• The Offer was therefore 100% of the upsized Offer, including the oversubscription of 4,605,421,562 Ordinary Shares.