FCMB Group Plc has praised CBN, SEC, and the NGX for their key support in completing the first phase of its capital-raising program, stating that the NGX Invest platform enabled 40,000 investors to participate in its public offer.
In April, Mr. Ladi Balogun, the group’s CEO, disclosed plans to raise N150 billion between April and September 2024 as part of its recapitalization efforts.
Mr. Balogun, on September 9th, expressed gratitude to the CBN, SEC, and NGX for their contributions to the capital raise, stating that these regulatory bodies played crucial roles in facilitating the process.
Statement from FCMB’s CEO
Mr. Ladi Balogun praised the CBN for its visionary leadership and lauded the SEC for fostering market confidence during challenging times.
“I commend the CBN for its strategic leadership and thank the SEC for restoring investor confidence and providing clear guidance,” he said.
He noted that the capital raise would strengthen FCMB’s balance sheet, enhance customer experience, and deliver value to shareholders, while also contributing to community development.
He also acknowledged the NGX for fostering an enabling platform for investors to easily access, buy, and invest in shares.
“I also acknowledge the NGX Group and the NGX Invest platform for their crucial role in enabling 40,000 investors to subscribe to the public offer through digital channels.”
NGX Invest Platform
The NGX Invest platform, launched by the Nigerian Exchange Group on July 11, 2023, has revolutionized the process of public offerings and rights issues in Nigeria.
Approved by the SEC, the platform provides a user-friendly and convenient way for investors to access the capital market, streamlining transactions.
Its launch was timely, coinciding with the CBN’s Banking Recapitalization Directive, which has created an enabling environment for banks like FCMB to bolster their capital bases.
Performance Update
FCMB Group recorded a profit before tax of N64.2 billion in the first half of 2024, reflecting a 68% year-on-year growth compared to N38.2 billion during the same period in 2023.
Credit Direct Limited, the group’s microlending subsidiary, reported a profit after tax of N3.9 billion and revenue of N16.5 billion.
In the stock market, FCMB opened trading at N7.60 on September 12th, 2024, as it corrects from a retracement that saw its price fall to N7.10 in April.
The initial announcement of the recapitalization program in April had caused some uncertainty in the sector, leading to temporary dips in share prices across several banks.
However, investor sentiment is expected to trickle into the sector as the bank’s complete the phases of CBN’s recapitalization program.
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