FCMB Group Plc has again raised its capital raise ceiling—this time to N400 billion, a move that is deepening anxiety among shareholders, who say the bank’s rapidly shifting targets could dilute existing holdings and shake confidence in its long-term strategy.
The new proposal, disclosed in a filing with the Nigerian Exchange (NGX) on Friday, gives the board sweeping authority to source capital using multiple instruments. These include ordinary and preference shares, bonds, loans, and both convertible and non-convertible notes, across local and international markets.
Investor groups say the continuous recalibration of FCMB’s capital targets raises questions about strategic clarity—especially after the bank launched several capital-raising initiatives within just 18 months.
Concerns Over Strategy and Shareholder Dilution
FCMB has rolled out aggressive fundraising campaigns since 2024, including:
- N144.56 billion raised in an oversubscribed 2024 public offer
- An increase in its capital raise ceiling from N150 billion to N340 billion
- A further jump to N370 billion in a November 14 filing
- Conversion of a $15 million mandatory convertible loan into equity
- An ongoing 2025 public offer targeting N160 billion, also expected to attract strong subscriptions
Now, with a proposed ceiling of N400 billion, shareholders fear that the influx of new shares could significantly dilute earnings per share unless the bank delivers proportionate returns.
Investor groups warn that although recapitalisation is necessary to meet the Central Bank of Nigeria’s (CBN) deadline, FCMB’s shifting targets signal planning gaps that could weaken trust in management decisions.
Market Performance
FCMB’s share price closed at N10.70 on Friday, November 21, 2025, after reaching a year-high of N11.85 in August. The stock has gained 13.8% year-to-date.
With a market capitalization of N458 billion, FCMB has recorded 2.23 billion traded shares valued at N23.6 billion across more than 45,000 deals so far this year.
Regulatory Pressure Intensifies
Banks across Nigeria are scrambling to meet the CBN’s recapitalisation timeline—one of the most aggressive in the country’s banking history. While FCMB says investor appetite is driving the upward revision, critics insist that capital plans should be clearer and more stable to prevent uncertainty in the market.
For shareholders, the biggest question remains: How much capital does FCMB truly need? And how will the new capital translate into long-term returns?
