FCMB's Market Cap Rises to N446.96bn Amid Debt Conversion

FCMB Group Plc has raised its market capitalisation to N446.96 billion after converting N23.11 billion loan to shares.

The debt-to-equity conversion saw the Group list an additional 3.16 billion shares at 50 kobo each on the Nigerian stock market.

The Nigerian Exchange (NGX) confirmed the conversion in a statement on Tuesday, September 23.

It noted that the shares were added to the Daily Official List, increasing FCMB’s issued and fully paid-up shares from 39,605,421,562 units to 42,771,706,274 units.

It showed that the new shares came from the conversion of a N23.11 billion mandatory convertible loan, including accrued interest, into equity at N7.30 per share.

The move is to strengthen FCMB’s capital base, enhance liquidity and market depth, ease debt obligations, and keep it within the Central Bank of Nigeria’s (CBN) capital adequacy requirements for deposit money banks.

Pinnacle Daily reports that FCMB had earlier in June announced plans to exit the CBN regulatory forbearance and planned to convert N23.11 billion mandatory loan into equity.

The measure was designed to strengthen its capital position and ensure compliance with the CBN’s single obligor lending limits.

The Group has seen an uptick in its share price since September 23, following the loan conversion into equity and the listing of additional ordinary shares.

Its share price climbed from N10.45 at the close of trade on September 23 to N10.90 as of September 26, gaining 1.87 per cent in one week, but dropped to N10.85 on Monday, September 29.

Pinnacle Daily also reports that FCMB’s share price opened the year at N9.40 and peaked at N11.05 in January.