FCMB raises ₦147.5bn in oversubscribed public offer

• Published On: 04 February 2025 at 18:00

First City Monument Bank Group successfully raised ₦147.5 billion in their latest public offer, which was oversubscribed by 33%, indicating strong investor confidence.

The capital infusion will increase FCMB Ltd.'s capital base to over ₦240 billion, exceeding the regulatory requirement for national banks.

FCMB Group's public offer, priced at ₦7.30, attracted 42,800 investors, including 39,000 new investors through digital platforms, according to The Cable.

Following the successful offer, the Group listed 19.8 billion shares on the Nigerian Exchange Group, having received capital verification and approval from the Central Bank of Nigeria and the Securities and Exchange Commission.

The listing, which occurred on January 30, increased FCMB Group's total issued shares to 39.6 billion.

To demonstrate its commitment to meeting international capital standards, FCMB has launched the second and third phases of its capital-raising initiative. Group CEO Ladi Balogun described the capital raise as a significant milestone in the company's strategic expansion plan.

Zenith Bank raised ₦350.4 billion through a hybrid offer that included both ordinary shares and a rights issue. Zenith Bank's public offering was oversubscribed by 60.4%, while its rights issue received a 100.18% subscription rate, with 5.2 billion ordinary shares allotted.

Zenith Bank increased its share capital to ₦614.6 billion, exceeding the regulatory minimum by ₦114.6 billion before the May 2026 deadline.

The CBN's decision in May 2024 to revise the minimum capital requirement for banking licenses sparked a surge in capital-raising activities among financial institutions. While some analysts believe certain banks will struggle to meet the new benchmarks, the strong participation of retail investors in these offerings demonstrates continued confidence in Nigeria's financial sector.