FCMB Group Plc’s fast-expanding capital-raise ambitions are drawing growing scrutiny from shareholders, who say the bank’s continuously shifting targets risk diluting investor value and clouding confidence in its long-term financing strategy.
A fresh filing submitted to the Nigerian Exchange (NGX) on Friday shows the Group is now seeking approval to lift its capital-raise ceiling to N400 billion—the third upward revision in under 18 months and the second in just two weeks. The proposed mandate would give the board sweeping authority to issue a broad array of instruments, ranging from ordinary and preference shares to convertible notes, bonds and loans in both domestic and international markets. The board would also set pricing and interest structures for upcoming capital programmes.
Rising Unease Over Capital Planning
FCMB maintains the revisions reflect strong investor interest and the urgent need to meet the Central Bank of Nigeria’s recapitalisation requirements. But investor groups argue that a capital strategy should not require repeated recalibrations within such a short span.
The pace has been striking:
- N144.56 billion raised through an oversubscribed 2024 public offer
- Original ceiling lifted from N150 billion to N340 billion
- Raised again to N370 billion in a November 14, 2025 filing
- US$15 million mandatory convertible loan converted to equity
- A 2025 public offer targeting N160 billion, with early signals of strong demand
Now, the request to stretch that ceiling to N400 billion has intensified shareholder concern. Critics say frequent shifts suggest weak forecasting and could saddle existing investors with dilution unless the enlarged capital base delivers proportionate earnings growth.
Investor groups warn that the eventual volume of newly issued shares could compress earnings per share if the Group’s expansion does not translate into higher profitability. Some argue that after several large fundraisings, FCMB should be operating with a more defined capital plan, rather than routinely revising targets upward.
Stock Performance Shows Mixed Signals
Despite the concerns, FCMB stock has posted modest gains this year. Shares closed last Friday, November 21, 2025, at N10.70, off their August 4 high of N11.85. The stock has risen 13.8% year-to-date, placing it mid-pack—98th on the NGX based on performance rankings.
The bank currently holds a market capitalization of N458 billion. Trading activity has been robust in 2025: 2.23 billion shares have changed hands across 45,781 deals, valued at N23.6 billion. Daily turnover has averaged 35.4 million units, with volumes peaking at 461 million shares on September 8 and dipping to 1.52 million on September 17.
What Comes Next
The proposed N400 billion ceiling will now depend on shareholder approval, which may hinge on whether FCMB can clearly articulate how the expanded capital base will drive growth, meet regulatory thresholds, and protect investor returns. With the CBN recapitalisation deadline approaching, both management and shareholders face mounting pressure to align on a strategy that strengthens the bank without eroding confidence in its long-term direction.