FCMB Group to raise N110bn via public offer

FCMB Group Tuesday revealed plans to raise N110billion capital through ordinary shares of 50 kobo at an offer of N7.30  per ordinary shares on the Nigerian Exchange Limited (NGX). Speaking at the “Facts Behind the Offer Presentation”, Group Chief Executive of FCMB, Ladi Balogun, described the offer by the group as a “compelling investment opportunity.” […]

FCMB Group Tuesday revealed plans to raise N110billion capital through ordinary shares of 50 kobo at an offer of N7.30  per ordinary shares on the Nigerian Exchange Limited (NGX).

Speaking at the “Facts Behind the Offer Presentation”, Group Chief Executive of FCMB, Ladi Balogun, described the offer by the group as a “compelling investment opportunity.”

Balogun explained that the group boasts of robust growth trajectory, digital led business model, impact through innovations and diversified services.

According to him, beyond making money, FCMB is committed to financial inclusion, promoting sustainable economic growth, driving expertand diaspora flows, climate change action among others.

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Balogun said “The offer price is N7.30k, a slight discount from the market. The gross proceeds is just N110 billion. Our plan just to make it very clear is to make sure that we retain our International licence. Simultaneously to this public offer we’re doing a private placement of somewhere between 40 to 50 million dollars, which will be convertible next year. That placement will close this year, but will convert to ordinary shares next year.

“Then in 2025, we plan to sell minority stakes in two of our businesses, the pensions business most likely and credit direct, credit direct will be through an IPO. We expect we’ll raise from those two activities somewhere between N80 to N90bn and that will be injected into the bank to put more Capital in.

“And then towards the end of 2025, we’re already in discussion with a number of offshore development finance institutions about a private placement which will be in the form of preferences in the holding company Downstreamed at Equity into the bank. And that would be the final phase through which we would now meet the 397 billion in total that we’re raising.”

The Group Managing Director/CEO of Nigerian Exchange Group, Temi Popoola, applauded FCMB’s support and buying for the technological and digital innovations at the NGX.

He expressed the NGX’s support for the FCMB Group in its bid to raise the capital.