FCMB will seek shareholder approval at a general meeting to raise ₦150 billion in new capital by selling stocks or bonds. The new capital will help the bank meet new recapitalisation requirements set by the Central Bank.

The requirements, which increase capitalisation limits tenfold, have led to a flurry of announcements by Access Holdings, GTCO, Stanbic IBTC, First Bank Plc, and UBA about their intentions to raise additional capital. 

FCMB, like its peers in the tier 2 banking category, has a target of ₦200 billion.

The bank said in a filing on the Nigerian Exchange on Wednesday that it will exploit different options for the raise. Among those options include issuing shares to investors in the Nigerian and international capital markets.  The price of the shares will be determined through book-building or any other acceptable valuation method or combination of methods. 

The financial institution will also explore the option of further increasing the share capital of the company “to an amount sufficient to enable it to meet the statutory minimum capital requirement as may be necessary.”

FCMB’s shares closed at N7 on the Nigerian Exchange, and its market capitalisation was N140 billion as of Wednesday, May 1, 2024.