Stockbrokers on the Nigerian Exchange Limited (NGX) have blamed FCMB Holding Plc for failing to provide regular information to the market, leading to a negative impact on the company’s share price.
The brokers, views were echoed by Alhaji Rasheed Yusuf, the most senior stockbroker on the trading floor, he expressed their concerns during a presentation for the fact before offer by FCMB’s Group Managing Director, Ladi Balogun.
The public offer according to the group is aimed to generate N110.9 billion by issuing 15.197 billion shares at N7.30 per share. although the share price closed at N7.90 kobo at the end of transaction on Tuesday 30, 2024.
After listening to the great prospect of the company, the brokers argued that FCMB’s management should provide regular updates, at least twice a year, to help them price the shares appropriately.
Balogun, however, highlighted the company’s strong potential, citing plans to establish a technology company and expand its consumer lending business, Credit Direct, through an initial public offer in 2025.
Despite the company’s regular dividend payments, market analysts noted that the low dividend levels, which are usually in kobos, make it challenging to drive the share price.
This capital-raising initiative aligns with the Central Bank of Nigeria’s (CBN) new capitalization requirements announced in March, which mandated a ten-fold increase in minimum capital requirements for banks. FCMB, holding an international license, is required to raise N500 billion and currently needs N375 billion to maintain its license.
