Shareholders of FCMB Group Plc have approved a capital raise of ₦340 billion to support the growth and compliance of its banking subsidiary, First City Monument Bank Limited, with the Central Bank of Nigeria’s international license requirements. The approval was secured during an extraordinary general meeting held in Lagos and virtually.
As part of the resolutions, shareholders also endorsed the divestment of stakes in one or more subsidiaries, with the proceeds designated for reinvestment in the banking subsidiary. Additionally, they approved the acceptance of surplus funds resulting from the oversubscription of the public offer launched in July 2024, subject to regulatory clearances.
The meeting also sanctioned an increase in the company’s issued share capital from ₦19.8 billion, divided into 39.6 billion ordinary shares of 50 kobo each. Shareholders authorized the issuance of up to $15 million (or its naira equivalent) through a mandatory convertible loan, targeted at select qualified investors.
“This is a critical milestone,” said Group Chief Executive Ladi Balogun, who highlighted the approval as a reflection of shareholder confidence in FCMB Group’s strategic direction.
The approved measures include an increase in the authorized capital raise from ₦150 billion to ₦340 billion, allowing the Group to leverage diverse financial instruments such as ordinary and preference shares, convertible and non-convertible securities, bonds, and loans.
The Group reported a 67% increase in its nine-month profit before tax, reaching ₦91.8 billion. An earlier capital raise in September 2024 was oversubscribed, underscoring investor trust in FCMB’s growth potential.
Shareholders praised the company’s performance, commending its ability to deliver robust returns and consistently surpass expectations.
Comments are closed.