Fidelity Bank Plc undertakes a N29.6bn Rights Issue and N97.5bn public offer

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Fidelity Bank Plc is set to raise up to N127.1 billion via a Rights Issue and Public Offer, as part of its strategy to meet the Central Bank of Nigeria’s revised minimum capital requirements introduced in March 2024. This capital-raising initiative aims to support the bank’s growth and diversification efforts. At a signing ceremony held at the bank’s headquarters in Lagos, it was disclosed that the proceeds will be invested in IT infrastructure, business expansion, and product distribution channels.

The Rights Issue will offer 3.2 million ordinary shares of 50 kobo each to existing shareholders at N9.25 per share in a ratio of one new share for every ten held as of January 5, 2024. Meanwhile, the Public Offer will make 10 billion ordinary shares of 50 kobo each available to the general public at N9.75 per share. The Acceptance and Application lists for both offers will open on June 20, 2024, and close on July 29, 2024. Stanbic IBTC Capital leads the issuance, supported by several joint issuing houses.

Fidelity Bank’s Managing Director, Dr. Nneka Onyeali-Ikpe, highlighted the bank’s commitment to leveraging the capital to drive sustained growth and regional expansion. Stanbic IBTC Capital’s Chief Executive, Oladele Sotubo, praised Fidelity Bank’s proactive measures in adhering to CBN’s capital requirements and expressed confidence in the success of the transaction, which he believes will inspire other companies to utilize equity capital markets for funding strategic initiatives.

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