Fidelity Bank Plc, a tier 2 bank, has unveiled its strategy to raise capital through a combination of a public offer and a rights issue, as announced in a press release on the NGX. The bank aims to generate fresh capital of approximately N96.3 billion at the current share price of N7.3.
The company intends to increase its share capital to N22.60 billion in order to explore strategic growth opportunities. A statement signed by Company Secretary Ezinwa Unuigboje and sent to the Nigeria Exchange Limited outlined the plans for this capital raise.
Fidelity Bank’s current issued share capital stands at N16,000,000,000.00, consisting of 32,000,000,000 Ordinary Shares with a nominal value of N0.50 each. The proposed increase would result in up to 13,200,000,000 additional Ordinary Shares with a nominal value of N0.50 each, bringing the total share capital to N22,600,000,00.00.
The company intends to carry out a capital raising exercise through a Public Offer for up to 10,000,000,000 Ordinary Shares, as well as a Rights Issue of up to 3,200,000,000 Ordinary Shares. The Rights Issue would allocate one new share for every ten existing shares held, benefiting both new and current shareholders.
The Board of Directors of Fidelity Bank will be authorized to allot the newly issued shares, which will have the same rank as the company’s existing shares, pending the receipt of necessary regulatory approvals.
By raising its share capital, Fidelity Bank aims to pursue strategic growth objectives, including increased profitability, domestic and international expansion, and the enhancement of digital capabilities. These proposed resolutions aim to position the bank to seize emerging business opportunities, ensure long-term profitability, and maintain a competitive advantage while creating greater value for shareholders.
The proposed share capital increase will be subject to approval at the company’s Extra Ordinary General Meeting, where shareholders will have the opportunity to vote on the resolutions.
