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NSE Lists First Monument Bank Group as Holdco

By on June 25, 2013

First City Monument Bank (FCMB) Group Plc was Monday listed on the Nigerian Stock Exchange (NSE) as a holding company after completing all regulatory and legal processes required for the setting up of a holding company to manage the bank and its subsidiaries.

A total of 19.041 billion shares of the FCMB Group were listed to replace the bank, which was the entity listed before now. Under the holding company structure, shareholding in the bank were exchanged in the ratio of one for one for the FCMB Group, effectively making the shareholders the owners of the group in the same ratio as previous holding in the bank.

Through the ownership of FCMB Group, the shareholders will continue to own all the subsidiaries 100 per cent including the bank and its subsidiaries- FCMB Capital Markets, CSL Stockbrokers Limited, Credit Direct Limited, FCMB (UK) Limited, Arab Gambia Islamic Bank Limited and First City Asset Management Limited.

Speaking during the ‘Facts Behind the Listing’ ceremony on the floor of the NSE in Lagos, Managing Director of FCMB Group, Mr. Peter Obaseki, said the holding company would create additional value by enhancing stakeholder engagements and reporting standards.

“It will provide and additional layer of non-operational governance to ensure sustainable earnings, consistent and complementary strategies and cultures across the bank other companies,” he said.

He added that the holding company structure would rig-fence depositors’ funds from investment banking activities, which remain critical to the growth and development of the Nigerian economy.

Also speaking, the Managing Director of First City Monument Bank Limited, Mr. Ladi Balogun, assured the stock market community that the level of governance, quality of communications and operations resulting from the new structure would definitely add value to stakeholders’ value.
“The structure will create a more diversified revenue base, while also allowing for focused management of the distinct businesses, thereby enhancing shareholder and customer value,” Balogun declared.
Meanwhile, trading at the stock market opened on a weak note as the NSE All-Share Index declined by 1.6 per cent to close at 35,861.59, while market capitalised ended lower at N11.521 trillion.