FCMB Group Plc has won shareholder approval for a 340 billion naira capital increase. The clearance, obtained during an extraordinary general meeting held both in Lagos and remotely, is critical for its banking subsidiary, First City Monument Bank Limited, to meet the Central Bank of Nigeria’s international licence criteria.
The approved actions include expanding the authorised additional capital increase from N150 billion to N340 billion, allowing the Group to explore a broader range of financial instruments, including ordinary and preference shares, convertible and non-convertible securities, bonds, and loans.
Shareholders also approved the sale of holdings in one or more subsidiaries, with revenues set aside for reinvestment in the banking subsidiary, as well as the acceptance of surplus funds resulting from the oversubscription of the public offer made in July 2024, subject to regulatory approval.
Furthermore, the meeting approved an increase in the company’s issued share capital from N19.8 billion to 39.6 billion ordinary shares of 50k (Fifty Kobo) each, as well as the authorisation to raise up to $15 million (or its Naira equivalent) through a mandatory convertible loan targeted at selected qualified investors. “This is a critical milestone,” stated Group CEO Ladi Balogun, expressing shareholder confidence in the FCMB Group’s strategic orientation.
FCMB Group reported a 67% increase in nine-month earnings before tax, at 91.8 billion naira. An earlier capital offering in September was oversubscribed, demonstrating investor confidence in the company’s future potential. Shareholders expressed confidence in the company’s future prospects, hailing its ability to deliver strong returns and exceed expectations.
