Fidelity Bank Plc has successfully increased its issued share capital from N26.7 billion to N36.7 billion, following shareholder approval at its Extraordinary General Meeting (EGM) held virtually on Thursday.
Strategic Capital Expansion
According to a corporate disclosure filed with the Nigerian Exchange Limited (NGX), the expansion was achieved through the creation of 20 billion additional ordinary shares, each valued at N0.50 kobo, raising the bank’s total share capital to N36.7 billion.
To further strengthen its financial position, shareholders granted the Board of Directors the authority to raise additional equity capital through various means such as private placements, rights issues, or public offers, subject to regulatory approvals.
In a statement, Fidelity Bank highlighted that this move aligns with its strategic growth objectives.
“This capital raise is a strategic move to strengthen our balance sheet, enhance our competitive position, and ensure we continue delivering exceptional value to our customers and stakeholders,” the bank stated.
Enhancing Market Position and Growth
The bank also received shareholder approval to underwrite the capital-raising exercise, if necessary, ensuring full subscription. The new shares will be listed on the NGX and will hold the same rights as existing shares.
Speaking on the development, Fidelity Bank reiterated that the capital expansion is part of its long-term strategy to drive sustainable growth.
“We are positioning Fidelity Bank for sustained growth. This additional capital provides us with the financial flexibility to explore new opportunities, deepen our digital transformation efforts, and expand our market reach,” the statement added.
Regulatory Compliance and Future Plans
To reflect the capital increase, shareholders also approved amendments to the bank’s Memorandum and Articles of Association, ensuring compliance with regulatory requirements.
Fidelity Bank affirmed its commitment to executing the next phase of its capital-raising plan, in accordance with guidelines set by the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), and the Corporate Affairs Commission (CAC).
Conclusion
With this capital boost, Fidelity Bank is well-positioned to strengthen its financial stability, support its expansion initiatives, and enhance shareholder value in the evolving Nigerian banking landscape.
