On October 2, 2025, the First City Monument Bank (FCMB) Group Plc announced its ₦160 billion public offer, marking another major step in its capital expansion drive.
The bank is offering 16 billion ordinary shares at ₦10 each to boost its balance sheet, advance digital transformation, and meet the Central Bank of Nigeria's new capital adequacy standards.
Following a successful ₦147.5 billion capital raise in 2024, which was oversubscribed by 33%, this new offer reaffirms investors' confidence in FCMB's growth strategy and its commitment to sustainable shareholder value.
Key Details of the Offer
| Aspect | Details |
|---|---|
| Offer Size | 16 billion ordinary shares of ₦0.50 each at ₦10 per share (₦160 billion gross; ≈₦156.59 billion net) |
| Offer Period | October 2 – November 6, 2025 |
| Eligibility | Open to all investors (existing and new); no minimum or maximum subscription (subject to SEC approval) |
| Lock-up Period | None — shares can be traded immediately after NGX listing |
| Use of Proceeds | ▪ 85.5% (₦133.87 B): Business expansion (corporate, retail, SME, agriculture, international growth) ▪ 11.1% (₦17.41 B): IT & cybersecurity ▪ 3.4% (₦5.31 B): Human capital development |
| Subscription Channels | Digital: FCMB Mobile App, FCMB Online Banking, publicoffer.fcmb.com, NGX Invest Portal Physical: Any FCMB branch or licensed stockbroker |
| Discount | 10.31% below August 12, 2025 closing price of ₦11.15 |
| Timeline (Post-Offer) | ▪ Allotment – Q1 2026 (SEC approval) ▪ Listing – Shortly after allotment ▪ CBN Deadline – March 31, 2026 |
Why Investors Are Paying Attention
Strong Fundamentals
FCMB operates a diversified ecosystem spanning commercial banking, pensions, consumer finance, and investment banking.
Its non-bank subsidiaries have posted a 61% compound annual growth rate (CAGR) in profit before tax between 2022 and 2025, a testament to its balanced revenue streams.
Digital Acceleration
Digital earnings have expanded 58% annually since 2022, now representing 13.9% of total income.
Roughly 9% of its loan book is digitally originated signalling FCMB's competitive advantage in fintech-enabled lending.
Attractive Valuation
At <0.6× price-to-book (2025 estimates), FCMB trades at a deep-value discount relative to its fundamentals.
The ₦10 offer price gives entry at an attractive valuation, roughly 10% below the August 2025 market price.
Track Record and Economic Tailwinds
The 2024 public offer's oversubscription, coupled with easing inflation (~20%) and rising foreign reserves, builds a strong macro backdrop. FCMB's capital base post-offer will exceed ₦240 billion, aligning with CBN's ₦500 billion target for national banks by 2026.
Post-Offer Strategy
The third phase of FCMB's recapitalisation plan involves selling minority stakes in two subsidiaries to fully meet the ₦500 billion target, creating headroom for growth and shareholder value creation.
Historical Performance and Dividend Profile
FCMB's stock has maintained a resilient trajectory, trading between ₦8.35 and ₦12.90 over the last 12 months.
The share price has appreciated by double-digits YTD, supported by consistent earnings growth and investor confidence.
Dividend distribution has been progressively upward
- ₦0.10 – ₦0.15 per share in earlier years,
- ₦0.50 – ₦0.55 per share in 2024 – 2025.
This reflects a disciplined approach to balancing reinvestment and shareholder reward, maintaining a yield that exceeds local savings rates.
Price Outlook
Short Term (by the end of 2026)
With the public offer closing soon and allotment expected in early 2026, price action is anticipated to reflect strong subscription demand and capital deployment into high-growth areas like digital lending and SMEs. Analyst consensus points to a one-year upside, driven by projected profit growth exceeding earlier forecasts (e.g., Q1-Q2 2025 actuals outperformed by 3-12%). This aligns with average 12-month targets around ₦12.50-₦14.37, supported by a resilient banking sector amid Nigeria's economic recovery, with banks' capital adequacy rising to 15.3% by end-2024. Current trading at ₦10.75 as of late October 2025 suggests room for stabilisation above the ₦10 offer price, bolstered by 16% YTD returns.
Medium Term (3 years, by the end of 2028)
Successful recapitalisation to ₦500 billion, combined with expansion in non-bank segments (e.g., pensions and consumer finance via Credit Direct), is expected to drive earnings acceleration. Historical PBT CAGR of 72% from 2022-2025 and robust H1 2025 growth in core banking (net interest and fee income) indicate potential for sustained re-rating. Sector-wide trends, including ₦800 billion raised by Nigerian banks in the first seven months of 2025 and projected net interest income growth to US$25.61 billion in 2025, support optimism amid technological advancements and regulatory tailwinds. This could lift valuations beyond the current <0.6x P/B, with share price compounding at rates seen in recent years (e.g., 187.8% return over the five years prior).
Long Term (5 years, by the end of 2030)
Longer horizon benefits from full integration of recapitalised funds into diversified growth (e.g., international expansion, IT upgrades representing 11.1% of proceeds). FCMB's track record of 61% CAGR in non-bank PBT (2022-2025) and overall resilience in transforming the Nigerian financial sector—poised for expansion driven by youthful demographics and private sector-led growth—underpin this outlook. Broader projections suggest a shift away from traditional banking by 2025-2030, favouring innovative players like FCMB, potentially yielding compound returns aligned with historical 23-37% annual price growth equivalents from past performance. Risks include economic volatility, but positive macro signals (e.g., easing inflation, strengthening reserves) favour upside.
Risks to Note
- Regulatory: Missing the CBN deadline could affect the licence category.
- Economic: Exposure to FX volatility, inflation, and oil-linked cycles.
- Litigation: 520 ongoing cases (19 exceed ₦500 million).
- Market/Cyber: Share volatility and potential cybersecurity threats.
- Dividend Uncertainty: Payouts depend on earnings strength post-offer.
Recent Developments (October 2025)
- Oct 13: Facts Behind the Offer at NGX, Analysts and fund managers lauded FCMB's expansion strategy.
- Oct 16: NGX CEO commended FCMB's ₦4.6 trillion capital-raise facilitation in H1 2025.
- Oct 21: Group CEO Ladi Balogun highlighted signs of macroeconomic stability.
- Social Buzz: @MyFCMB posts on X generated 400+ likes; investors shared experiences via NGX Invest Portal, confirming swift (<2 minute) subscriptions and international accessibility through licensed stockbrokers.
Conclusion
The FCMB Public Offer 2025 represents more than a capital raise; it's a decisive step toward long-term financial resilience, digital expansion, and investor inclusion.
At a ₦10 entry price and 10% discount to market value, this offer provides a rare combination of growth, yield, and value within Nigeria's evolving banking landscape. For seasoned investors and first-time participants alike, this is a timely opportunity to align with one of Nigeria's most forward-thinking financial institutions.
Disclaimer: This analysis, including the short, medium, and long-term price outlooks for FCMB Group Plc shares, is provided for informational purposes only and is based on publicly available data, historical trends, and analyst projections as of October 30, 2025. It does not constitute financial, investment, or professional advice. Stock prices are inherently volatile and can be influenced by numerous factors, including economic conditions, regulatory changes, market sentiment, and unforeseen events. Past performance is not indicative of future results, and there is no guarantee that the projected price ranges will be achieved. Investors should conduct their own thorough research, consider their individual financial situation, risk tolerance, and objectives, and consult with qualified financial advisors or professionals before making any investment decisions.
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