The Securities and Exchange Commission (SEC) has approved a 14-day extension for Fidelity Bank’s combined offer, which was initially set to close on Monday.
The extension was confirmed in a market bulletin issued by Godstime Iwenekhai, Head of the Issuer Regulation Department at NGX Regulation. The bulletin stated, “Trading licence holders are hereby notified that Fidelity has obtained the approval of the Securities and Exchange Commission to extend the combined offers by 14 days. Consequently, trading in Fidelity’s rights will now close on Monday, August 12, 2024.”
Fidelity Bank’s combined offer includes a public subscription for 10 billion ordinary shares at 50 kobo each, priced at N9.75 per share, and a rights issue offering 3.2 billion ordinary shares at 50 kobo each, priced at N9.25 per share for existing shareholders.
In related developments, shareholders of Fidelity Bank have approved the absorption of surplus funds from the public offer. This decision was among six resolutions passed at an Extraordinary General Meeting (EGM) held virtually last Friday.
Mr. Mustafa Chike-Obi, Chairman of Fidelity Bank Plc, explained that the bank is committed to meeting the new capital requirements set by the Central Bank of Nigeria within the regulatory timeframe. He stated, “The resolution proposed for shareholders’ approval at this EGM is to enable an increase in share capital from 22.6 billion to 26.7 billion by creating 8.2 billion additional shares to accommodate potential oversubscription from the Public Offer and Rights Issue, subject to regulatory approvals.”
Chike-Obi further elaborated that the additional capital would allow the bank to leverage emerging opportunities, secure long-term profitability, and enhance shareholder value. “We have seen a lot of demand for our shares. We think this is the chance to take on additional capital while making it easier for us to execute stage two of our capital-raising strategy. So, we think this is a good thing for us to do at this time,” he added.
Additionally, Fidelity Bank announced plans to increase its issued share capital from N22.6 billion to N26.7 billion. The bank’s board has authorized the creation of up to 8.2 billion additional ordinary shares of 50 kobo each.
The extension and capital raise come as part of Fidelity Bank’s strategy to strengthen its financial base and comply with regulatory requirements, positioning itself for sustainable growth and enhanced market competitiveness.
