By Barnabas Esiet.
Fidelity Bank Plc has announced its intention to raise up to N127.10 Billion through a Public Offer and Rights Issue for existing shareholders.
The bank’s decision to raise capital is in line with the Central Bank of Nigeria’s revised minimum capital requirements for commercial banks, introduced on March 28, 2024.
The Combined Offer is aimed at supporting Fidelity Bank’s growth and diversification efforts, with a Signing Ceremony scheduled for June 5, 2024, in Lagos.
Shareholders had previously approved the Rights Issue and Public Offer at an Extra-Ordinary General Meeting in August 2023.
Under the Rights Issue, 3.2 billion ordinary shares will be offered at N9.25 per share, while the Public Offer will see 10 billion ordinary shares available to the general public at N9.75 per share.
Stanbic IBTC Capital is the Lead Issuing House for the Combined Offer, with several other Joint Issuing Houses involved in the process.
The Acceptance and Application lists for the Rights Issue and Public Offer will open on June 20, 2024, and close on July 29, 2024.
Fidelity Bank’s Managing Director, Dr. Nneka Onyeali-Ikpe, highlighted that the proceeds from the Combined Offer will be used for IT infrastructure, business expansion, and product distribution channels.
Oladele Sotubo, Chief Executive of Stanbic IBTC Capital, praised Fidelity Bank’s management for their commitment to meeting the CBN’s capital requirements and expressed confidence in the success of the transaction.
Shareholders will receive the Rights Circular and Prospectus directly, while printed copies of the Public Offer Prospectus will be available at Fidelity Bank and the Issuing Houses.
Existing shareholders and potential investors are encouraged to seek professional advice before subscribing to the offer.
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