By David Akinmola
FCMB Group Plc’s repeated upward revision of its capital-raising ceiling from N340 billion to N370 billion, and now to N400 billion has triggered fresh unease among investors and shareholder associations, who warn that the bank’s shifting targets risk diluting value and eroding confidence in its long-term strategy.
The latest revision, contained in a filing submitted to the Nigerian Exchange (NGX) on Friday, seeks shareholder approval to empower the board to raise funds through a wide range of instruments, including ordinary and preference shares, convertible and non-convertible notes, bonds and loans, across domestic and foreign markets. The resolution also grants the board discretion to determine pricing, interest rates and maturity structures under subsequent capital programmes.
Although FCMB maintains that the expansion is driven by strong investor appetite and the need to meet the Central Bank of Nigeria’s (CBN) recapitalisation deadline, critics insist the constant recalibration points to a lack of clarity in the Group’s capital planning.
Shareholders groups caution that frequent adjustments could place an undue burden on existing investors if earnings fail to keep pace with an enlarged capital base.
The Group has undertaken a flurry of capital-raising initiatives over the past 18 months, including an oversubscribed 2024 public offer that delivered N144.56 billion, a US$15 million mandatory convertible loan that has since been converted into equity, and an ongoing 2025 public offer targeting N160 billion.
The new requested ceiling comes barely two weeks after the bank informed the NGX of its intention to raise the cap from N340 billion to N370 billion an increase that itself followed an earlier jump from N150 billion.
In total, FCMB has raised or approved raising capital across multiple channels within a short window:
• N144.56 billion from its 2024 public offer
• An expansion of its capital-raising limit from N150 billion to N340 billion
• A move to N370 billion, as disclosed in a November 14 filing
• A US$15 million convertible loan now converted into equity
• A 2025 public offer aimed at mobilising N160 billion, with expectations of strong subscription
Investor groups say the pattern is worrying. They argue that a bank which has launched several capital programmes within a year-and-a-half should have developed a clearer sense of its total requirement before embarking on multiple issuances.
Many warn that the sheer volume of shares likely to be created under the new N400 billion ceiling could lead to significant earnings dilution unless FCMB achieves high returns on the expanded capital.
Market data show that FCMB’s share price closed at N10.70 per share on Friday, November 21, 2025, after touching a year high of N11.85 on August 4. The stock opened the year at N9.40 and has since appreciated by 13.8 per cent, ranking 98th on the NGX in year-to-date performance.
With a market capitalisation of N458 billion, the counter has traded 2.23 billion shares worth N23.6 billion in 45,781 deals this year, averaging 35.4 million units per session. The year’s highest daily volume of 461 million shares was recorded on September 8, while the lowest was 1.52 million on September 17.
