FCMB public offer records 223% subscription

FCMB public offer records 223% subscription

February 12, 2008/ Punch


First CityMonument Bank Plc’s recently concluded public offer recorded a subscription level of 223 per cent, the bank announced on Monday.


The bank has also received approval from the Securities and Exchange Commission for the basis of its allotment for the domestic offering.


FCMB returned to the capital market between October 16, 2007 and November 13, 2007 to raise additional funds. A total of 4.5 billion ordinary shares of 50 kobo each at N14 per share were offered for subscription, while $100m or N12.6bn of Global Depository Receipts were offered internationally.


A statement by the bank on Monday revealed that a total of N167.9bn was raised from both the domestic offering and the GDRs placed on the international market.


Foreign investors’ participation in both the domestic offer and the GDR placements was $428.3m.


This represents 30.85 per cent of the total subscription, the statement said.


The Chief Executive Officer of the bank, Mr. Ladi Balogun said, “This level of foreign investment is heart-warming. The profile of the investors, who are amongst the best fund-managers in the global financial market is significant testament to the acceptability of the ‘FCMB Story’ and the level of confidence this class of investors has in the management and future prospects of the bank.â€ÂÂÂÂÂ


The statement also confirmed that SEC had earlier given the bank approval for the basis of allotment of the GDR in December, 2007. The underlying shares of the GDR were already listed on the Nigerian Stock Exchange, it said.


“We expect that subscribers to the domestic offer will start receiving their share certificates and return/rejected money warrants within the next 15 working days.  This is obviously the fastest completion of both a public offer and a GDR by any Nigerian bank,†Balogun said.


Proceeds of the offer, the bank had said, would be utilised in project financing, investment banking, acquisition and capitalisation of stock broking activities.


It would also be used for leasing operations, channel enhancement, and the establishment of a training school, the bank said. 



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