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The Group CEO, Ladi Balogun, made this known during the
'Facts Behind the Offer' presentation at the Nigerian Exchange (NGX) in Lagos.
This initiative is part of the bank's strategy to meet the Central Bank of
Nigeria's capitalization requirements.
In addition to the public offer, the Group plans to raise up
to N397 billion through a three-phased approach to support its diversification
plans, including establishing a Technology Holding Company by 2026.
Balogun shared that the initial phase intends to generate
150 billion nairas through a public offering of 15.12 billion shares at 7.30
nairas, totaling 110.9 billion nairas. Additionally, a private placement of
approximately 40 to 50 million US dollars is expected to conclude by year-end
and become convertible next year. The public offering will facilitate our
prompt response to market demands while ensuring streamlined and efficient
execution.
He mentioned that the second phase will involve the sale of
minority interests in one or two subsidiaries, aiming to raise between N80 to
N100 billion, bringing the total capital raised to around N250 billion.
He emphasized that by selling minority stakes, they can
prevent over-dilution of shareholders and acknowledge the undervalued potential
of their subsidiaries.
The final phase, scheduled for the end of 2025, will include
a private placement with identified potential investors. FCMB intends to
successfully complete all phases and achieve the N50 billion recapitalization
target.
He also highlighted that FCMB is experiencing growth of
approximately two million customers annually, with expectations of an
accelerated growth rate. In terms of banking, they currently rank around number
seven in net assets and aspire to transition to tier one banking from their
current tier two status.
The capitalization initiative is a crucial step towards
achieving this goal. Additionally, FCMB is among the top five Pension Fund
Administrators (PFA) and aims to secure a position in the top three by the end
of the following year.
“Our goal is to ensure we sustain and grow earnings per
share for our investors despite the significant share issuance. 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. We
believe these sectors are vital for Nigeria’s development,” he stated.
The CEO of NGX, Jude Chiemeka, expressed confidence in FCMB’s
capital raising plans. He highlighted the Exchange’s efforts in ensuring a
smooth process and encouraged potential stakeholders and investors to utilize
the NGX Invest platform for participation in the public offering.
“We have continued to deploy technology to drive a digital
Exchange while making onboarding hassle-free for every investor. There is a
whole demographic of young investors out there who can leverage our digital
platform to partake in this offer and become part of the NGX family.”