Stories by Seun Ibiyemi
FCMB Group Plc has once again revised its capital-raising target upward, seeking shareholder approval to increase the ceiling from N370 billion to N400 billion.
The latest adjustment, contained in a filing with the Nigerian Exchange (NGX) on Friday, has sparked renewed concern among investors and shareholder groups who say the bank’s shifting targets risk eroding confidence and diluting existing shareholdings.
The new proposal grants FCMB’s board extensive authority to raise capital through a wide range of instruments including ordinary and preference shares, bonds, loans, as well as convertible and non-convertible notes across both domestic and international markets.
The board would also determine pricing, interest rates, maturity periods and other terms for future capital programmes.
FCMB says the upward revision is driven by strong investor demand and its commitment to meeting the Central Bank of Nigeria’s (CBN) recapitalisation deadline.
But some investors argue that the frequent adjustments are troubling, especially for a bank that has already undertaken several capital-raising efforts in quick succession.
Over the past 18 months, FCMB has launched multiple capital mobilisation initiatives, including an oversubscribed 2024 public offer that delivered N144.56 billion, a US$15 million mandatory convertible loan now converted into equity and an ongoing 2025 public offer targeting N160 billion, which is also expected to draw significant interest.
The pattern of incremental revisions has also raised questions. Just two weeks ago, FCMB notified the NGX of its intention to shift the ceiling from N340 billion to N370 billion, itself an increase from a previous benchmark of N150 billion.
Shareholder groups say that while strengthening capital buffers remains essential under the new CBN recapitalisation regime, such continuous recalibration suggests a lack of clarity in FCMB’s long-term capital planning.
“Shareholders need predictability,” one investor group noted. “A company that has raised capital repeatedly should have a clearly defined target instead of adjusting projections every few months.”
The proposed N400 billion ceiling will be tabled for approval at FCMB’s upcoming Extraordinary General Meeting (EGM).