FCMB Group Plc’s rapid escalation of its capital raise ceiling—from N340 billion to N370 billion, and now to N400 billion- is generating serious concern among investors and shareholders groups who argue that the bank’s shifting targets risk diluting shareholder value and undermining confidence in its management strategy.
The new proposed increase, contained in a new filing with the Nigerian Exchange (NGX) on Friday containing the resolution seeking shareholder approval, would grant FCMB’s board broad authority to raise capital through a wide range of instruments, including ordinary and preference shares, convertible and non-convertible notes, bonds and loans, across both local and international markets.
The board would also determine pricing, interest rates, and maturity terms under future capital programmes.
While FCMB says the upward revision is driven by strong investor demand and the need to meet the Central Bank of Nigeria’s (CBN) recapitalisation deadline, critics argue that the bank’s shifting target could burden existing shareholders.
Concerns over capital strategy and planning
The Group has launched multiple capital-raising efforts over the last 18 months, including an oversubscribed 2024 public offer that delivered N144.56 billion, a US$15 million convertible loan now converted into equity, and an ongoing 2025 public offer targeting N160 billion.
The latest adjustment in target capital ceiling comes less than two weeks after FCMB notified the NGX of its intention to move the ceiling from N340 billion to N370 billion—an increase that itself followed an earlier leap from N150 billion.
In just 18 months, FCMB has raised or approved raising capital across multiple channels:
- N144.56 billion from its oversubscribed 2024 public offer
- An expansion of its capital raise ceiling from N150 billion to N340 billion
- Further expansion to N370 billion, according to a Nov.14 corporate filing with NGX
- A US$15 million mandatory convertible loan, now converted into equity
- A 2025 public offer aimed at raising N160 billion, with indications of potential oversubscription
Shareholders say that continuous recalibration is troubling, pointing out that a company that has repeatedly raised capital should have had a clear target before embarking on successive offers.
A major concern among the investors is the sheer volume of new shares that will accompany the new ceiling, warning that earnings per share could fall significantly if the expanded capital base does not generate adequate returns.
Stock performance
FCMB share price closed its last trading day (Friday, November 21, 2025) at N10.70 per share on the NGX, after hitting the year high of N11.85 on August 4. It began the year with a share price of N9.40 and has since gained 13.8% on that price valuation, ranking it 98th on the NGX in terms of year-to-date performance.
With market capitalization of N458 billion, the stock has traded a total volume of 2.23 billion shares—in 45,781 deals—valued at N23.6 billion over the period, with an average of 35.4 million traded shares per session. A volume high of 461 million was achieved on September 8th, and a low of 1.52 million on September 17th, for the same period.
