Fidelity Bank Plc has finalized arrangements to raise up to N127,100,000,000 through a Rights Issue to existing shareholders and a Public Offer, as part of its strategy to bolster its share capital base in line with the revised minimum capital requirements for Nigerian commercial banks set by the Central Bank of Nigeria (CBN) on March 28, 2024.
The capital raised is expected to support the bank’s initiatives aimed at driving sustained growth and diversification of its earnings base. The signing ceremony for the Combined Offer took place at the bank’s headquarters in Lagos on June 5, 2024.
The Rights Issue and Public Offer were approved by shareholders at an Extra-Ordinary General Meeting held on August 11, 2023. Under the Rights Issue, N3,200,000,000 ordinary shares of 50 kobo each will be offered at a ratio of 1 new ordinary share for every 10 ordinary shares held as of January 5, 2024, at ₦9.25 per share.
For the Public Offer, 10,000,000,000 ordinary shares of 50 kobo each will be offered to the general investing public at ₦9.75 per share. Stanbic IBTC Capital is the Lead Issuing House, with joint Issuing Houses including Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited, and Planet Capital Limited.
The Acceptance and Application lists for the Rights Issue and Public Offer will open on Thursday, June 20, 2024, and close on Monday, July 29, 2024.
Dr. Nneka Onyeali-Ikpe, Managing Director and CEO of Fidelity Bank, disclosed that the proceeds from the Combined Offer will be directed towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.
Oladele Sotubo, Chief Executive of Stanbic IBTC Capital, praised Fidelity Bank’s management team for their commitment to executing the Combined Offer and meeting the CBN’s revised minimum capital requirements. He expressed confidence that the deal would set a precedent for other corporates to utilize the equity capital markets for strategic business needs.
The Rights Circular, including the Provisional Allotment Letter and Participation Form, will be sent directly to shareholders, while printed copies of the Public Offer Prospectus will be available at Fidelity Bank offices and the Issuing Houses during the Public Offer Application Period. Existing shareholders and prospective investors are advised to review the Rights Circular and Prospectus and seek professional guidance if needed before subscribing.
