Shareholders To Decide FCMB’s N340bn Capital Raise

First City Monument Bank (FCMB) Group has announced plans to hold an Extraordinary General Meeting (EGM), where shareholders will deliberate on several strategic resolutions.

The meeting is aimed at strengthening the company’s capital base and enhance its operational capabilities in both the domestic and international markets.

According to a notice to the Nigerian Exchange Limited (NGX) seen by THE WHISTLER, at the EGM the Board of Directors will seek shareholder approval to increase the company’s authorized capital from N150bn to N340bn, or its equivalent in foreign currencies.

This significant raise is proposed to be achieved through the issuance of various financial instruments, including ordinary shares, preference shares, and convertible or non-convertible securities.

The capital raise may involve public offerings, private placements, rights issues, or other transaction modes, with terms and conditions determined by the Board, subject to regulatory approvals.

The Board also intends to secure authorization to divest portions of the company’s stakes in one or more subsidiaries. The proceeds from such divestments will be strategically reinvested into First City Monument Bank Limited to meet the capital objectives outlined in the resolutions.

This move is seen as part of the company’s broader strategy to optimize its financial structure and support growth initiatives.

Following the company’s recently concluded public offer, which ran from July 29, 2024, to September 4, 2024, the Board will seek approval to accept surplus funds arising from oversubscription.

This would be implemented proportionately, ensuring compliance with the company’s issued share capital limits and obtaining necessary regulatory endorsements.

FCMB Group plans to increase its issued share capital from N19.8bn, divided into 39.6 billion ordinary shares of 50 kobo each, by creating additional shares required to effectuate the proposed capital raise.

These new shares will rank equally with the existing ones, maintaining parity for all shareholders.

As part of the capital raising strategy, FCMB is proposing a mandatory convertible loan of up to $15m (or its Naira equivalent) to a select group of qualified investors. The loan, including accrued interest, will be converted into ordinary shares under terms deemed suitable by the Board, contingent on regulatory approvals.

The Board seeks the mandate to pass necessary resolutions, execute the capital raise, allot new shares to investors, and ensure compliance with all regulatory requirements among others.

Shareholders To Decide FCMB’s N340bn Capital Raise is first published on The Whistler Newspaper