FCMB seeks shareholder approval to lift ₦150 billion

FCMB will search shareholder approval at a normal assembly to lift ₦150 billion in new capital by promoting shares or bonds. The brand new capital will assist the financial institution meet new recapitalisation necessities set by the Central Financial institution.

The necessities, which enhance capitalisation limits tenfold, have led to a flurry of bulletins by Entry Holdings, GTCO, Stanbic IBTC, First Financial institution Plc, and UBA about their intentions to lift extra capital. 

FCMB, like its friends within the tier 2 banking class, has a goal of ₦200 billion.

The financial institution stated in a filing on the Nigerian Exchange on Wednesday that it’s going to exploit totally different choices for the elevate. Amongst these choices embrace issuing shares to buyers within the Nigerian and worldwide capital markets.  The worth of the shares can be decided by book-building or some other acceptable valuation methodology or mixture of strategies. 

The monetary establishment may even discover the choice of additional rising the share capital of the corporate “to an quantity enough to allow it to fulfill the statutory minimal capital requirement as could also be vital.”

FCMB’s shares closed at N7 on the Nigerian Trade, and its market capitalisation was N140 billion as of Wednesday, Could 1, 2024.