FCMB Group Plc is preparing to sell equity stakes in its fintech subsidiary, Credit Direct, through an Initial Public Offering (IPO). Credit Direct, aiming to become Nigeria’s leading non-bank lending company, offers a range of lending and fund management services to individuals and businesses.
Thank you for reading this post, don't forget to subscribe!Ladi Balogun, CEO of FCMB Group, highlighted that Credit Direct is the group’s top non-bank lender. In his presentation, he stated, “A business that delivers market-leading returns, a very high-quality loan book. It is our plan to IPO this business sometime in the not-too-distant future.”
Credit Direct, FCMB’s second-largest subsidiary, recorded a post-tax profit of ₦3.93 billion for the first half of 2024. Licensed by the Central Bank of Nigeria, the company has served millions of customers nationwide since 2007.
In its half-year report, FCMB Group reported a 68% increase in profit before tax (PBT). Notably, Credit Direct’s PBT surged by 154%, while the banking group’s PBT grew by 47%, investment banking by 110%, and investment management by 33%.
Additionally, FCMB is seeking to raise ₦110.9 billion through a public offer of 15.197 billion shares at ₦7.30 per share. This capital raise aligns with the Central Bank of Nigeria’s capital requirements.
