FCMB goes public, lists at N3.4 per share
14th Jan 2005, Source: Businessday Newspapers
First City Monument Bank (FCMB) Plc, the flagship of the FCMB Group, Tuesday became a fully publicly quoted company as it listed by introduction 3.0 billion ordinary shares of 50 kobo each at N3.45 per share on the floor of the Nigeria Stock Exchange (NSE). This therefore brought to a close all arrangements by the highly diversified financial services group to adequately position itself in line with the current developments in the banking sub sector.
The development, according to the bank, will serve as a prelude to a planned Initial Public Offer (IPO), from which it will pool N12.0 billion to raise its shareholders funds to about N21 billion by June 2005.
Meanwhile the bank recorded 35 percent oversubscription on its just concluded private placement. The results showed that the bank pooled well over N4.0 billion as against the targeted N3.0 billion. Added to N3.0 billion as at June 30, 2004, the bank's shareholders' funds therefore, currently stands at close to N8.0 billion.
Michael Balogun, Group Chairman of FCMB, disclosed this Thursday, at a Stockbrokers' Forum hosted by the bank to brief capital market operators on the bank's plans and prospects in the light of the on-going reforms in the banking industry.
He also revealed that the bank has signed a Memorandum of Understanding (MOU) with a commercial bank that has extensive northern spread of about 14 branches, in addition to four other branches located in other regions of the country. This will bring the total branch network to about 50 on conclusion of the merger, with a total target of 100 branches before December, 2005.
The Chairman noted "we have decided not to make noise about the signing of an MOU because such agreement is just the beginning of a process that will ultimately lead to a merger or consolidation and may be subject to arduous negotiation."
He added "we are also going on with discussions with two other local banks with a view to further consolidation. It is our hope that with our own capital base of about N9.0 billion in addition to our consolidation partners, we should be able to have strength of not less than N16.0 billion before our IPO which comes up in the New Year, and during which we intend to raise not less than N15.0 billion. Our target is therefore beyond the N25 billion prescribed by CBN."
He explained that the bank is equally exploring opportunities of attracting funds from foreign strategic investors who have indicated interest to tap into the bank's strong capital market franchise
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