The shareholders of FCMB Group Plc have approved a significant capital raise of N340 billion, aimed at meeting the new capital requirements set by the Central Bank of Nigeria for its banking subsidiary, First City Monument Bank Limited.
This landmark decision was reached during a recent extraordinary general meeting held virtually in Lagos. FCMB has already initiated its capital-raising efforts, completing the first phase in September, and plans to secure N150 billion between April and September 2024 as part of its recapitalization strategy.
The approval facilitates an increase in the authorized capital raise from N150 billion to N340 billion, allowing the Group to utilize various financial instruments, including ordinary and preference shares, convertible and non-convertible securities, bonds, and loans.
Shareholders have also supported the divestment of stakes in one or more subsidiaries, with the proceeds designated for reinvestment in the banking sector. Additionally, there was agreement to accept surplus funds generated from the oversubscription of a public offer launched in July 2024, pending regulatory approvals.
The meeting further sanctioned the increase of the company’s issued share capital from N19.8 billion to N39.6 billion in ordinary shares of 50k each, along with the authorization to raise up to $15 million (or its naira equivalent) through a mandatory convertible loan aimed at select qualified investors.
Commenting on the approval, the Group Chief Executive expressed that this milestone underscores shareholder confidence in FCMB Group’s strategic direction. In its nine-month report for the period ending September 30, 2024, FCMB Group announced an impressive 67 percent growth in profit before tax, reaching N91.8 billion, with the Nigerian Banking operations contributing 68 percent of the total profit before tax.
