FCMB Group Plc has opened a N160 billion public share sale as part of its recapitalisation programme, a move designed to strengthen its banking subsidiary and meet the Central Bank of Nigeria’s (CBN) new minimum capital requirement for international banks. The CBN, in its April 2024 directive, mandated all banks operating with international licences to raise their capital base to at least N500 billion by March 2026.
The share sale, offering 16 billion ordinary shares at N10 each, will run until November 6, 2025, giving retail and institutional investors the opportunity to participate in one of the most significant capital raises in Nigeria’s financial sector this year. Proceeds from the transaction will be used to recapitalise First City Monument Bank Limited, the group’s flagship banking subsidiary, and ensure it retains its international licence under the new regulatory regime.
Building on 2024 Momentum
This marks the second phase of FCMB’s recapitalisation drive. In 2024, the group successfully concluded a N147.5 billion rights issue, the first in 16 years. That offer was oversubscribed by 33%, with participation from over 42,800 investors—92% of whom subscribed via digital platforms. Analysts believe the strong performance of the previous raise will carry momentum into the current offering, particularly given FCMB’s track record of profitable growth and its digital-first approach.
Strong Financial Performance
The group’s financial results have reinforced investor confidence. Between 2022 and 2025, FCMB posted a compound annual growth rate (CAGR) of 72% in profit before tax (PBT). Its non-bank subsidiaries also delivered a 61% CAGR, powered by Credit Direct Finance Company Limited, Nigeria’s largest non-bank lender, and FCMB Capital Markets, which ranked first on the FMDQ league table for bond listings and commercial paper issuance in the first half of 2025.
Digitalisation remains central to FCMB’s growth strategy. Groupwide digital revenues have expanded at more than 58% annually since 2022, now contributing 13.9% of gross earnings. Digital lending accounted for 9% of the total loan book as of June 2025, reflecting the bank’s increasing reliance on fintech-driven models to scale access to credit and enhance efficiency.
Valuation and Market Position
At an estimated 2025 price-to-book ratio below 0.6x, FCMB’s stock is trading at what analysts describe as a rare blend of deep value and high growth potential. This valuation, combined with strong fundamentals and a rapidly expanding digital footprint, is expected to make the current share sale attractive to investors seeking both stability and upside in Nigeria’s banking sector.
Following the completion of the N160 billion raise, FCMB plans to finalise the sale of minority stakes in two of its subsidiaries, with proceeds also channelled into the bank. Together, these moves are projected to lift the group’s qualifying core capital above the N500 billion threshold, effectively closing its three-stage recapitalisation programme ahead of the March 2026 deadline.
Broader Sector Context
The capital raise comes at a time when Nigerian banks are under pressure to scale up balance sheets and enhance resilience in the face of regulatory changes, currency volatility, and rising competition from both traditional peers and fintech challengers. FCMB’s proactive approach places it among the first movers in meeting the CBN’s recapitalisation directive, signalling confidence in its long-term growth prospects and commitment to maintaining international operations.
Looking Ahead
For shareholders, customers, and the broader market, FCMB’s N160 billion share sale represents more than compliance—it is a bold step to consolidate the group’s position as a leading financial services player in Nigeria and across Africa. With robust growth metrics, a proven digital strategy, and a clear roadmap to surpass the CBN’s capital requirements, FCMB is positioning itself for sustained relevance in an increasingly competitive banking landscape.
As the November 6 deadline for the public offer approaches, investor attention will remain firmly on how FCMB executes this second phase of its recapitalisation journey, and what it signals about the resilience and future of Nigeria’s financial services sector.
