By Chinwendu Obienyi
FCMB Group Plc has announced plans to raise fresh equity capital through an Offer for Subscription, as the Nigerian financial services group positions itself for a new phase of regional and international expansion.
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In a regulatory filing to the Nigerian Exchange Limited (NGX) seen by Daily Sun at the weekend, the company said the move follows a resolution by its Board of Directors, acting under the authority granted by shareholders at an Extraordinary General Meeting held on December 19, 2024.
The capital raise, which is subject to the approval of the Securities and Exchange Commission (SEC), is intended to bolster the group’s capital base and fund its strategic growth objectives. The proceeds will be injected as equity into First City Monument Bank Limited, the commercial banking arm of the group.
“This offer is being undertaken in furtherance of the company’s strategy to strengthen its capital base in anticipation of its focused regional and international expansion plans,” the bank said.
FCMB noted that it plans to launch the offer at a live market price, with an appropriate discount to ensure investor participation. However, the company did not disclose the total value of the proposed raise or the offer timeline, pending regulatory clearance.
“The Board is keen to commence the Offer based on a live market price while ensuring that the Offer price reflects an appropriate discount. Details of the Offer will be disclosed upon the receipt of the SEC’s approval”, the bank disclosed.
The move comes amid renewed pressure on deposit money banks (DMBs) to boost capital buffers as macroeconomic volatility, tighter monetary conditions, and the Central Bank of Nigeria (CBN)’s revised minimum capital requirements reshape the financial services landscape. Several banks have recently unveiled capital raising programmes in response.
FCMB Group, which offers services spanning commercial and retail banking, investment banking, asset management, and pensions, has previously signaled its intention to expand operations beyond Nigeria, targeting key growth markets across West and Central Africa.
Analysts suggest the fresh capital could help FCMB deepen its lending capacity, improve risk-weighted asset coverage, and support the digital transformation of its banking operations. It could also strengthen its competitiveness in a consolidating financial services market.
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