FCMB Group Plc has increased its capital target to N400 billion, sparking concerns among investors over potential share dilution as the bank accelerates efforts to meet the Central Bank of Nigeria’s (CBN) recapitalisation deadline.
Okay News reports that the latest move marks FCMB’s third upward adjustment within months, deepening scrutiny of the bank’s evolving FCMB capital raise strategy. The new ceiling—contained in a fresh filing submitted to the Nigerian Exchange (NGX) on Friday—would empower the board to raise funds through a broad mix of instruments, including ordinary and preference shares, bonds, loans, and convertible securities across Nigerian and international markets.
The filing also grants FCMB’s board authority to determine pricing, interest rates, and maturity structures for future capital programmes.
The bank says rising investor interest and regulatory requirements justify the expanded target. However, critics argue that the frequent shifts reflect inadequate long-term planning and pose dilution risks for existing shareholders, particularly if the enlarged capital base is not matched by stronger returns.
Okay News reports that FCMB has already embarked on several major funding programmes over the last 18 months. These include an oversubscribed 2024 public offer that raised N144.56 billion, the conversion of a US$15 million loan into equity, and an ongoing 2025 public offer aiming to raise N160 billion.
The escalation from N150 billion to N340 billion, then N370 billion, and now N400 billion, has left many investors questioning the bank’s capital strategy. Several shareholder groups warn that continuous recalibration could impact earnings per share as more shares enter the market.
Analysts also highlight the bank’s recent stock performance as part of the broader evaluation of the FCMB capital raise plan. FCMB’s share price closed at N10.70 on Friday, 21 November 2025, below its yearly peak of N11.85 reached in August. The stock remains up 13.8% year-to-date, ranking 98th on the NGX.
With a market capitalisation of N458 billion, the stock has recorded 2.23 billion traded shares in 45,781 deals so far this year, valued at N23.6 billion. Daily trade volume has averaged 35.4 million shares, hitting a high of 461 million on 8 September.
As the CBN’s recapitalisation deadline draws nearer, investors are watching closely to see whether the expanded FCMB capital raise will strengthen the bank’s long-term growth or heighten short-term risks for shareholders.
