FCMB Group Launches N160 Billion Public Share Sale
FCMB Group Plc has initiated a public share sale worth N160 billion to reinforce its banking subsidiary and meet the Central Bank of Nigeria’s (CBN) new minimum capital requirements of N500 billion. This move is essential for the bank to maintain its international banking licence. The share offering involves 16 billion shares priced at N10 each, with the campaign set to run until November 6, 2025.
The proceeds from this offering are intended to recapitalise the banking subsidiary and support the lender in retaining its international licence. This comes after a previous share sale of N147.5 billion in 2024, which marked the first such initiative in 16 years.
Last year’s offer was oversubscribed by 33 per cent, with 42,800 investors participating, of whom 92 per cent accessed the offering through digital channels. Analysts believe that the momentum from the previous round will carry over into this second phase of FCMB’s three-stage recapitalisation plan.
Strong Financial Performance
FCMB has demonstrated robust growth, with group profit before tax rising at a compound annual rate of 72 per cent between 2022 and 2025. The non-bank subsidiaries have also contributed significantly, delivering a 61 per cent PBT. This performance is driven by Credit Direct Finance Company Limited, Nigeria’s largest non-bank lender, and FCMB Capital Markets, which topped the FMDQ fixed income league table for bond listing and commercial papers in the first half of 2025.
At the group level, digital initiatives have been key to driving growth. Digital revenues have grown at more than 58 per cent yearly since 2022, now accounting for 13.9 per cent of gross earnings. As of June 2025, digital lending stood at nine per cent of the loan book.
Valuation and Market Outlook
With a 2025 estimated price-to-book ratio below 0.6x, FCMB stock trades at what analysts describe as a rare mix of deep value and high growth. This valuation suggests that the company offers an attractive opportunity for investors seeking both stability and potential for future returns.
Recapitalisation Strategy
FCMB’s three-stage recapitalisation plan is designed to ensure long-term sustainability and competitiveness in the Nigerian banking sector. The recent share sale is part of this broader strategy, aimed at strengthening the financial foundation of the group and supporting its expansion plans.
The bank has consistently shown resilience and adaptability, particularly in leveraging digital transformation to enhance customer experience and operational efficiency. This focus on innovation has not only boosted revenue streams but also positioned FCMB as a leader in the digital banking space.
Investor Confidence
The success of the 2024 share sale, which attracted significant interest from both retail and institutional investors, underscores the confidence that market participants have in FCMB’s business model and growth trajectory. With the current share offering, the bank aims to build on this momentum and further solidify its position in the market.
Analysts are optimistic about the future prospects of FCMB, citing its strong balance sheet, diversified revenue sources, and strategic investments in technology. These factors are expected to drive sustained growth and deliver value to shareholders over the coming years.
