The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) have approved FCMB Group’s N147 billion rights offer,as confirmed in a statement released on Monday by Olufunmilayo Adedibu, the company secretary.

This was the CBN’s second approval in days for the first tranche of banks’ capital-raising efforts this year.

The offer was oversubscribed by 33 percent, drawing in 42,800 investors. Of those, 92 percent subscribed through more accessible digital channels, like the bank’s mobile app, bringing in over 39,000 new investors to the FCMB Group.

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The regulators have confirmed that the total sum raised amounted to N147,508,464,568.60. Additionally, N144,559,788,701.30 was used to issue 19,802,710,781 ordinary shares at a price of N7.30 each, making the total number of shares issued after the offer 39,605,421,562.

Regulatory approvals

Additionally, FCMB reported that it has received regulatory clearance to use the public offering’s net proceeds to fortify First City Monument Bank’s capital basis.

The new capital base of FCMB, which surpasses the minimum amount needed for a national banking licence, now stands at over N240 billion thanks to the new cash injection.

With the help of the FCMB Group’s capital program’s later stages, the company stated that it hopes to maintain its international banking licence.

FCMB Group’s CEO applauds CBN, SEC, others 

Commenting on the successful completion of the public offer, the Group Chief Executive, Ladi Balogun, said, “We are grateful to our existing shareholders and new investors for coming out strongly to support this offer. The success of the public offer reflects significant investor confidence in our strategy and growth potential, as well as trust in the board, leadership, and our people to fulfil our commitments and realise this potential.”

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“We also extend our profound appreciation to the Central Bank of Nigeria, the Securities and Exchange Commission, and the Nigerian Exchange Limited for their continued foresight, innovation, guidance, and support, which has been instrumental in achieving this significant milestone.”

“This marks an important step forward in our journey to unlock new opportunities, create value for our shareholders, and contribute to the economic growth of Nigeria and Africa. We remain committed to executing the subsequent phases of our capital-raising program in 2025.”

The plans to raise N340 billion in additional capital were approved by shareholders at the recently held Extraordinary General Meeting.