First City Monument Bank Group (owners of FCMB LTD) has announced that it has raised 147.5 billion naira ($95.84 million) through a public offering of shares to meet regulatory requirements to operate an international banking licence. This round of funding brings the bank’s share capital to over N240 billion.
In the corporate disclosure made to the Nigerian Exchange Group, the Group noted that the bank had sold 19.8 billion ordinary shares at 7.30 naira each, attracting 42,800 investors out of which 39,000 were new investors to the group.
The offer for which the bank has received regulatory approvals from both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) was oversubscribed by 33%, with 92% subscribing via more digital channels.
Key takeaways from the corporate disclosure
- Total amount raised and verified by the regulatory authorities: ₦147.51 billion.
- Total amount absorbed: ₦144.6 billion.
- Total amount of shares issued: 19,802,710,781 ordinary shares at ₦7.30 per share.
- Total post-offer issued shares: 39,605,421,562.
- Total number of applications received: 42,839 applications for 20,407,337,982 ordinary shares valued at N148.97 billion were received and processed.
- Total number of valid and processed applications: 42,826 applications for 20,402,782,982 ordinary shares valued at ₦148.940.
Following the approval of the Securities & Exchange Commission, the Group has noted that it would allot a total of 19,802,710,781 ordinary shares of 50 kobo each. Affected subscribers who will not be allotted shares will have their monies remitted back to them no later than January 6, 2025.
To retain its international banking licence, the Group has planned subsequent phases (2 & 3) of the capital programme to ensure that the bank raises at least ₦500 billion, which is the CBN’s recapitalisation benchmark for banks with international licence. With its current total asset of more than ₦240 billion, the bank has only surpassed the benchmark for national license banks, which is ₦200 billion.
Following the receipt of regulatory approvals, the Group will downstream the net proceeds of the public offer from the holding company to its banking subsidiary.
Currently, only Access Bank Plc has been able to reach the CBN’s benchmark for the recapitalisation of banks with international licences.
With the strides made by banks this year through public offers and other mediums, it is hoped that more banks will attain the benchmarks for their respective licences well ahead of the CBN’s recapitalisation deadline of March 2026.
Summarily in the first phase of its recapitalisation undertaking, FCMB was able to raise ₦148.940 from a total of 42,826 regulatory certified and processed applications for 20,402,782,982 ordinary shares valued.
In the next second and third phases of capital realisation, it is hoped that the bank will maintain and supersede its current realisation to enable it to retain its international banking licence from the CBN.