Fidelity Bank goes for N127.1bn capital raise

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In response to the Central Bank of Nigeria’s revised minimum capital requirements for commercial banks introduced in March 2024, Fidelity Bank Plc has announced plans to raise ¦127.1 billion through a Rights Issue and Public Offer.

The Rights Issue will offer 3.2 billion ordinary shares at ¦9.25 per share, while the Public Offer will present 10 billion ordinary shares at ¦9.75 per share. This move is part of Fidelity Bank’s strategy to bolster its capital base, support sustained growth, and diversify its earnings.

The Rights Issue will be available to existing shareholders in the ratio of one new ordinary share for every 10 ordinary shares held as of January 5, 2024. Proceeds from the capital raised will be invested in enhancing IT infrastructure, expanding business operations regionally, and improving product distribution channels. At the signing ceremony held at the bank’s headquarters in Lagos, Managing Director and CEO Dr. Nneka Onyeali-Ikpe emphasized that the capital injection will underpin the bank’s strategic growth initiatives.

Over the past five years, Fidelity Bank’s shares have achieved a remarkable 507.14 percent increase in capital gains, significantly outperforming the All Share Index (ASI) and other benchmarks on the Nigerian Exchange Limited (NGX).

Source: Vanguard

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