Fidelity Bank Plc has announced its ambitious plan to commence a capital raise totaling N127.1 billion through a combination of public offer and rights issue, scheduled to commence on June 20, 2024. This move is part of the bank’s strategy to fortify its capital base in compliance with the Central Bank of Nigeria’s directive aimed at enhancing financial institutions’ readiness for Nigeria’s envisioned $1 trillion economy.
The financial institution aims to secure N97.5 billion through the public offer and an additional N29.6 billion from the rights issue. Existing shareholders will have the opportunity to subscribe to one new ordinary share for every ten shares held as of January 5, 2024, priced at N9.25 per share under the rights issue.
In adherence to the capitalization directive set forth by the Central Bank in March 2024, Fidelity Bank’s capital-raising initiative aligns with broader efforts within the banking sector to bolster financial resilience and operational capacity.
The rights issue will involve offering N3.2 billion ordinary shares of 50 kobo each, priced at N9.25 per share, exclusively to existing shareholders. Simultaneously, the public offer will make available N10 billion ordinary shares of the same denomination to the general investing public at N9.75 per share.
Acknowledging the strategic significance of this capital raise, Fidelity Bank has appointed Stanbic IBTC Capital to lead the issuance, supported by a consortium comprising Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, and Iroko Capital Market.
To provide comprehensive insights into the capital-raising exercise, Fidelity Bank has scheduled a ‘Facts Behind the Offer’ presentation at the Nigerian Exchange on June 20, 2024. This event aims to elucidate the benefits and potential returns associated with the initiative, engaging directly with prospective investors.
The acceptance and application period for both the rights issue and the public offer will run until July 29, 2024, allowing ample time for stakeholders to participate in the bank’s strategic expansion plans.
Fidelity Bank’s proactive approach underscores its commitment to robust growth and sustained financial stability amid evolving economic landscapes and regulatory imperatives.
