FCMB’s ₦110.9b public offer: Key takeaways from the Group’s investor pitch

FCMB Group Plc, a leading financial services holding company in Nigeria’s financial sector, held a Facts Behind the Offer (FBO) session recently at the Nigerian Exchange (NGX) as part of its recapitalization drive aimed at raising ₦110.9 billion. The session highlighted the Group’s robust financial performance and underscored why it presents a compelling investment opportunity.

The Group commenced its public offer of 15.197 billion shares at N7.30 per share, amounting to N110.9 billion, on 29 July, 2024, and is expected to close on 4 September, 2024.

Its presentation at the NGX focused on its strong profitability and strategic growth trajectory. The Group reported a significant increase in earnings, showcasing its diversification, resilience and operational efficiency in a competitive market. This strong financial performance is a testament to its effective management and strategic foresight.

The Chief Executive Officer of FCMB Group, Ladi Balogun, said the public offer is part of the bank’s comprehensive plan to meet the Central Bank of Nigeria’s (CBN) capitalization requirements, adding that in addition to it, the Group has adopted a phased approach to raise up to N397 billion additional capital to drive its diversification plans.

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.

“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 where FCMB Group has demonstrated impressive year-on-year revenue and profit growth, reflecting its unique business model and strategic execution. Others key areas are:

Strategic expansion plans: The capital growth will support significant digital transformation investments, expand market reach, and strengthen the Group’s competitive edge.

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.