Fidelity Bank To Seek Shareholders Approval To Raise New Capital On Stock Exchange

Fidelity Bank Plc, said it would seek shareholders approval to raise new capital on the Nigerian Exchange.

The bank has made this known in its published notice of Extraordinary General Meeting that will hold on August 11, 2022.

According to the bank, among other special businesses of that day, it will seek shareholders’ nod to increase share capital of the bank currently at N16 billion made up of 32 billion ordinary shares to N22.6 billion by the creation of up to 13.2 billion additional shares.

“The bank will also seek members’ approval for the company to undertake a capital raising exercise via a public offer for up to 10 billion ordinary shares and rights issue of up to 3.2 billion ordinary shares representing one new share for every 10 shares held, to new and existing shareholders respectively,” he stressed.

Fidelity Bank said: “the bank is on a strong growth trajectory and requires additional capital for increased profitability, expansion (domestic and international) and enhancement of its digital capabilities.

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“Advances in technology, the rapid evolution of the business of banking and changes in the operating landscape make it imperative that the Bank remains agile, adaptable and properly positioned to respond appropriately to developments, whilst remaining a competitive and forward looking institution.

“The proposed resolutions are aimed at ensuring that your company can take advantage of emerging business opportunities and secure long term profitability and competitive advantage, while ensuring increased shareholder value.”

It added that, it is against this background that the resolutions proposed for adoption at this Extra Ordinary General meeting are being presented for shareholders approval.

Fidelity Bank closed at N7.50 per share on July 18, 2023, recording a year-to-date (YtD) growth of 72.4 percent. The stock approaches its 52-week high of N9.82 as against a 52-week low of N2.87.