FCMB Group Plc has secured shareholder approval for a 340 billion naira capital raise.
The approval, granted during an extraordinary general meeting held in Lagos and virtually, is crucial for its banking subsidiary, First City Monument Bank Limited, to comply with the Central Bank of Nigeria’s international license requirements.
The approved measures include increasing the authorized additional capital raise from N150 billion to N340 billion, which empowers the Group to explore a diverse mix of financial instruments, such as ordinary and preference shares, convertible and non-convertible securities, bonds, and loans.
Shareholders also endorsed the divestment of stakes in one or more subsidiaries, with proceeds earmarked for reinvestment in the banking subsidiary, and the acceptance of surplus funds arising from oversubscription of the public offer launched in July 2024, subject to regulatory approvals.
Additionally, the meeting approved an increase in the company’s issued share capital from N19.8 billion divided in 39.6 billion ordinary shares of 50k (Fifty Kobo) each while authorizing the raise of up to $15 million (or its Naira equivalent) via a mandatory convertible loan targeted at select qualified investors.
“This is a critical milestone,” said Group Chief Executive Ladi Balogun, emphasizing shareholder confidence in FCMB Group’s strategic direction.
FCMB Group reported a 67% growth in nine-month profit before tax to 91.8 billion naira. An earlier capital raise in September was oversubscribed, showing investor confidence in the company’s growth prospects.
Shareholders expressed confidence in the company’s trajectory, applauding its ability to generate robust returns and exceed expectations.
