FCMB N160bn Public Offer: Investment Opportunity for Shareholders and High-Net-Worth Investors

The Group Chief Executive Officer of FCMB Group, Ladi Balogun, has stated that the company’s N160 billion public offer will help build a stronger and more resilient financial institution capable of sustaining long-term growth and supporting Nigeria’s evolving economy.

Balogun made this known during the “Facts Behind the Offer” presentation at the Nigerian Exchange Limited (NGX), where he explained that the new capital raise marks an important milestone in the group’s recapitalisation drive.

According to him, the offer aims to solidify FCMB’s capital base, retain its international banking licence, and enhance shareholder value in line with the Central Bank of Nigeria’s new N500 billion minimum capital requirement for international banks.

The bank’s previous public offer raised N147.5 billion, recording an impressive 33 percent oversubscription and attracting 42,800 investors. Of this number, 92 percent subscribed digitally through FCMB’s online channels such as its mobile app. The successful round, which had approvals from both the Central Bank of Nigeria and the Securities and Exchange Commission, reflected investors’ growing confidence in the bank’s stability and digital innovation.

Speaking at the event, Balogun highlighted FCMB’s long-standing relationship with the Nigerian Exchange, noting that the institution had raised over $863 million through the market since inception. He emphasized that the strong participation of domestic investors in the group’s recent capital raises demonstrates confidence in the Nigerian economy and its financial system.

In the bank’s half-year 2025 results, FCMB reported a 23 percent increase in profit before tax and a 20.6 percent return on equity. Balogun explained that despite high funding costs driven by the 50 percent cash reserve ratio, equity raising would help the bank replace expensive deposits with long-term capital. This move, he said, would improve profitability and sustain growth momentum.

He added, “Following FCMB’s 2024 capital raise, our net interest margin rose by 9.1 percent, and return on equity reached 20 percent by mid-year. We expect similar outcomes once this new capital raise is completed in November 2025, with funds deployed by the first quarter of 2026 to further reduce fixed deposits.”

Balogun also underscored the importance of strong economic growth, stating that sustained poverty reduction requires Nigeria to maintain annual GDP growth of around seven percent. He acknowledged the Central Bank’s reform efforts aimed at supporting economic recovery and financial inclusion.

Encouraging shareholders to participate actively, Balogun urged investors to increase their stakes to prevent dilution and take advantage of the bank’s growth prospects.

The Chief Executive Officer of the Nigerian Exchange Limited, Jude Chiemeka, commended FCMB for its transparency and engagement with investors through the presentation. He noted that the financial services sector remains one of the most active in the Nigerian capital market, accounting for over 75 percent of daily trading volumes and contributing approximately N2.2 trillion in taxes over the last four years.

Chiemeka further revealed that N4.6 trillion was raised across multiple asset classes on the NGX in the first half of 2025. He encouraged FCMB to expand collaboration with the NGX’s X-Academy to enhance investor education, governance, and market development.

FCMB’s stock performance has been remarkable, appreciating by 395 percent since 2020—equivalent to a compound annual growth rate of about 70 percent. Analysts believe the new capital injection could further strengthen the bank’s position in Nigeria’s competitive banking sector and attract more institutional investors.

The bank’s management reiterated its commitment to sustainable banking practices, financial innovation, and consistent returns for shareholders, emphasizing that the N160 billion offer is part of its long-term growth vision.