Fidelity Bank Set To Raise N127.1bn Via Rights Issue, Public Offer

Fidelity Bank Plc has concluded all necessary arrangements to raise a total of N127.100 billion by way of a rights issue to existing shareholders and a public offer.

The combined offer is a part of the Bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN) on March 28, 2024. Overall, the Bank expects that the capital raised would support the Bank’s efforts to drive sustained growth and diversification of its earnings base.

The signing ceremony with respect to the combined offer was held yesterday in Lagos.

The Bank’s shareholders had already approved the rights issue and public offer at the Extra-Ordinary General Meeting held on August 11, 2023.

Under the rights issue, 3.200 billion ordinary shares of 50 kobo each will be offered in the ratio of one new ordinary share for every 10 ordinary shares held as of January 5, 2024, at N9.25 per share.

RELATED

Insecurity: Army Chief Boosts Morale Of Frontline Troops In Akwa Ibom

25 minutes ago

FCT, Neighbouring States To Experience Thunderstorms, Heavy Rainfalls

25 minutes ago

For the Public Offer, 10 billion ordinary shares of 50 kobo each will be offered to the general investing public at N9.75 per share. The acceptance and application lists for the rights issue and public offer are expected to open on June 20, 2024 and close on July 29, 2024.

At the Signing Ceremony, managing director and chief executive officer, Fidelity Bank, Dr. Nneka Onyeali-Ikpe, disclosed that the proceeds of the combined offer will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.

The chief executive of Stanbic IBTC Capital, the lead issuing house to the combined offer, Oladele Sotubo, commended Fidelity Bank’s management team for their commitment towards executing the Combined Offer.

He lauded their efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks. While thanking the Bank for trusting Stanbic IBTC Capital to lead and advise on this landmark transaction, Sotubo expressed confidence that the deal would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.