Fidelity Bank To Raise New Capital Through Public Offer, Rights Issue

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Fidelity Bank Plc has notified the Nigerian Exchange Limited (NGX) on its intention to raise capital through a combination of a public offer and a rights issue.

In a statement signed by the Company Secretary, Ezinwa Unuigboje, and sent to the NGX, the Tier-2 deposit money bank (DMB), indicated that the latest offer would raise its share capital to N22.60 billion and properly position it for increased profitability, expansion (domestic and international) and enhancement of its digital capabilities

It is projected that if the application secured the approval of the NGX, the sale  of the new shares at the current N7.3 per share could raise about N96.3 billion fresh capital for the bank.

The statement NGX reads: “That the issued share capital of the Company currently N16,000,000,000.00 (Sixteen Billion Naira) made up of 32,000,000,000 Ordinary Shares of N0.50 each, be increased up to N22,600,000,00.00 (Twenty-two Billion, Six Hundred Million Naira) by the creation of up to 13,200,000,000 (Thirteen Billion, and Two Hundred Million) additional Ordinary Shares of N0.50 each.

“That the Company undertakes a capital raising exercise via a Public Offer for up to 10,000,000,000 Ordinary Shares and Rights Issue of up to 3,200,000,000 Ordinary Shares representing 1 (one) new share for every ten (10) shares held, to new and existing shareholders respectively.

“That the Board of Directors of the Company be and is hereby authorised to allot the shares issued in accordance with resolution (2) above, which shall rank pari-passu with the Company’s existing issued shares, subject to the receipt of relevant regulatory approvals.

“That the Board of Directors be and is hereby authorized to perform all such lawful acts that are necessary to give effect to the above-listed resolutions including but not limited to ensuring compliance with all regulatory procedures and requirements, obtaining all required approvals and filing within time, all regulatory returns in relation to the above resolutions”, it added.

As required by NGX regulations, the share capital increase is subject to adoption at the company’s Extra Ordinary General meeting to be presented for shareholders’ approval.

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