posted August 23, 2024
First City Monument Bank (FCMB) Group Plc recently hosted a “Facts Behind the Offer” (FBO) session at the Nigerian Exchange (NGX) as part of its efforts to raise ₦110.9 billion through a public offer. The session emphasized the Group’s strong financial performance and strategic growth plans, presenting a compelling case for potential investors.
The public offer, which commenced on July 29, 2024, and will close on September 4, 2024, involves the sale of 15.197 billion shares at ₦7.30 per share, totaling ₦110.9 billion. During the NGX presentation, FCMB Group highlighted its impressive earnings growth, operational efficiency, and diversification strategy, which have contributed to its resilience in a competitive market.
Subscribe To The Best Team In Conservative, Business, Technology, Lifestyle And Digital News Realtime! support@ddnewsonline.com
FCMB Group’s CEO, Mr. Ladi Balogun, explained that this public offer is part of the Group’s broader strategy to meet the Central Bank of Nigeria’s (CBN) capitalization requirements. The Group plans to raise an additional ₦397 billion in a phased approach to support its diversification and growth objectives. This move is indicative of FCMB’s commitment to strengthening its capital base and ensuring long-term sustainability in Nigeria’s financial sector.
He stated: FCMB is growing at approximately two million customers a year, and we believe that growth rate will accelerate. In banking, we are about number seven in net assets and among the top five Pension Fund Administrators (PFA) in the country.
Subscribe To The Best Team In Conservative, Business, Technology, Lifestyle And Digital News Realtime! support@ddnewsonline.com
“Our goal is to sustain and grow earnings per share for our investors despite our additional share issuance. The proceeds from this capital raise will primarily drive business growth, focusing on lending to key sectors such as agriculture, SMEs, and non-oil exports, which we believe are vital for Nigeria’s development”.
Mr. Balogun stressed that the capital would enable the Group to enhance its market position, invest in innovative technologies, and continue delivering substantial value to its stakeholders.
Key highlights from the session included:
Strong profitability: FCMB Group has demonstrated impressive year-on-year revenue and profit growth, reflecting its unique business model and strategic execution.
Strategic expansion plans: The capital raise will support significant digital transformation investments, expand market reach, and strengthen the Group’s competitive edge.
Subscribe To The Best Team In Conservative, Business, Technology, Lifestyle And Digital News Realtime! support@ddnewsonline.com
Resilient performance: Despite economic uncertainties, FCMB Group has maintained a robust performance, evidencing its ability to navigate challenges effectively and sustain long-term growth.
Experienced management: The Group’s leadership team brings extensive industry expertise and a proven track record, reinforcing investor confidence in the company’s strategic direction.
The FBO session provided a transparent view into FCMB Group’s strategic objectives, positioning the Group as a viable and lucrative investment opportunity. With a clear focus on profitability and growth, FCMB Group is well-positioned to leverage the capital to drive further success and deliver sustainable returns.
Investors are encouraged to consider FCMB Group for its strong financial performance, strategic growth plans, and the potential for long-term value creation.
Note: This article is credit to Business Insider Africa and Agency reports.
Lovely!