As it seeks to raise an additional N160bn through an offer for subscription, FCMB Group has highlighted the 400 per cent returns on its share price in five years.
According to a statement on Sunday, FCMB Group said its shares have appreciated by 400 per cent between 3 June 2019 and 31 May 2024, a performance regarded as outstanding in the industry.
FCMB raised N144.6bn in 2024 through an offer for subscription, leading to an increase in issued shares from 19.8bn to 39.6bn. This capital raise followed the directive of the Central Bank of Nigeria to banks on the new minimum capital requirements. This upward review impacted the group’s flagship banking subsidiary, FCMB Limited, which holds an international licence.
“The group’s share price delivered a 17.0 per cent year-on-year capital gain in 2024, and for investors who participated in the public offer at N7.30, the price return was 50.7 per cent. Trading at an attractive valuation of 0.58x price-to-book ratio, FCMB Group’s new capital raise is a chance for investors to bet on growth. A low P/B can indicate an undervalued stock offering upside potential if the bank’s growth accelerates,” part of the report read.
With the capital-raising exercise, FCMB is seeking to raise its banking subsidiary’s paid-up capital from N102bn (as of March 2024) to a minimum of N500bn by March 2026. Following completion of the 2024 public offer, the bank’s total paid-up capital increased from N102.85bn to N243.8bn upon securing the national banking licence.
In line with the CBN mandate, the bank requires an additional capital injection of up to N256.2bn for an international banking licence.
The PUNCH reports that FCMB Group Plc is offering 16,000,000,000 new ordinary shares by way of an offer for subscription at N10.00 per ordinary share of N0.50k each. The offer price represents a discount of approximately 10.31 per cent to the closing share price of N11.15k on 12 August 2025.
FCMB Group shares have returned 35.86 per cent in the past year to 10 October 2025. The new capital raise is expected to extend FCMB Group’s strong share price performance as the proceeds are deployed for growth. With a market capitalisation of N466bn, FCMB is in a position where the stock can easily double its market cap and still remain attractively priced compared to peers.
