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FCMB Raises N13b GDR

Category: Public Offers Private Placements

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FCMB Raises N13b GDR

November 01, 2007/ Independent



Apart from its domestic offer of 4.5 billion ordinary shares of 50 kobo at N14 per share, to raise about N63 billion, First City Monument Bank Plc (FCMB) has said it was raising $100 million (N12.6 billion) by way of unlisted global depository receipt (GDR) in an international offer.


The bank, would through the GDR, offer 900 million of 50kobo each to international investors.


Managing Director of FCMB, Ladi Balogun, who disclosed this during the bank’s investors’ forum in Abuja, said the process of effecting the GDR has already started with Deutsche Bank Trust Company Americas acting as Depository Bank.


Balogun explained that after approvals by the appropriate regulatory authorities, foreign investors, who have subscribed to the GDRs may convert their GDRs into ordinary shares.


Those in the audience while Balogun was addressing the forum, included captains of industry, top government officials as well as traditional rulers, including former Managing Director, Afribank Plc, Alhaji Kashim Njidda; Managing Director of Legacy Pensions and Benefits, Ahaji Bello Maccido; Minister of Tourism, Adetokunbo Kayode (SAN).


Balogun said after deducting the cost and expenses of the domestic and international offers, estimated at N2.276 billion and N315 million respectively, representing 3.43 per cent of the gross proceeds, the net proceeds of N73.008 billion would be used to finance information technology (IT); training school called FCMB Academy, which would be located in Lagos; acquisition and capitalization of stockbroking activities; major infrastructural development projects; investment banking; working capital, amongst others.


Specifically, he revealed that, N1.5 billion would be used for the FCMBAcademy as it has proposed to invest 8.9 per cent of the proceeds in capacity building, adding that 3.6 per cent of the total funds would be used as working capital.


Balogun said the bank, which recorded gross earnings of N24.6 billion and a profit before tax of N7.4 billion as the year-ended April 30, 2007, has projected that, by the corresponding period in 2008, it would post gross earnings of N64.3 billion and a profit before tax of N18.98 billion.


He pointed out that, gross earnings increased by 307.29 per cent to the level as at April 30, 2007 from N6.121 billion the end of 2005, while total assets grew by 411.58 per cent from N51.318 billion to N262.53 billion over the period. Similarly, he added, profit before tax translated to a growth of 592.50 per cent from N1.093 billion in 2005 to N7.569 billion as at April 30, 2007, pointing out that, profit after tax, improved by 641.96 per cent from N801.791 million to N5.949 billion over the same period.




FCMB has already reached a Management Services Agreement with Sabre Capital Worldwide (Mauritius) Limited, a leading global private equity and financial services company for a technical and managerial support to facilitate the development of a strong consumer banking franchise. 

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