FCMB Group Plc is planning to sell equity stakes in Credit Direct through an Initial Public Offering (IPO).
Credit Direct, with a vision to be the number 1 non-bank lending company in Nigeria is the fintech arm of the FCMB Group, offering lending and fund management to individuals and businesses.
Ladi Balogun, CEO, FCMB Group said in a presentation that in consumer finance “we are the number one non-bank lender in Nigeria, through a subsidiary called Credit Direct Limited.”
“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,” Balogun said.
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The fintech company which is FCMB’s second largest subsidiary is a pure play fintech and money spinner for FCMB Group recording post-tax profit of N3.93 billion in the January to June 2024 period.
Licensed by the Central Bank of Nigeria, Credit Direct is a leading non-bank finance company and has proudly served millions of customers nationwide since 2007.
FCMB Group in the half-year (H1) to June 30 recorded profit before tax (PBT) increase by 68percent. That of the banking group grew by 47 percent, Credit Direct (154percent), Investment Banking (110percent), and Investment Management (33 percent).
FCMB is currently in the market for its public offer seeking to raise N110.9 billion additional capital through the issuance of 15.197 billion shares at N7.30 per share. The capital raise is part of the Group’s plan to meet the Central Bank of Nigeria’s (CBN) capitalisation requirements.
