Fidelity Bank plans to seek approval from its shareholders to raise additional capital through the issuance of 13,200 billion ordinary shares. The capital will be raised through a combination of a public offer and a rights issue.
Based on the current share price of N7.3, the bank could potentially raise about N96.3 billion in fresh funds. The bank’s issued share capital, currently at N16 billion, will be increased to N22.6 billion by creating additional ordinary shares of N0.50 each.
Opinion: Fidelity Bank’s decision to raise additional capital through a public offer and rights issue indicates its strategic move to strengthen its financial position and support its growth plans. The proposed capital raise, if approved, would provide the bank with substantial funds to enhance its operations, expand its services, and potentially explore new business opportunities. As the Nigerian banking sector becomes increasingly competitive, bolstering capital reserves can help Fidelity Bank stay resilient and agile in navigating market challenges. The move to seek shareholders’ approval demonstrates transparency and openness in the bank’s decision-making process. If successfully executed, the capital raise could fuel the bank’s growth and contribute to its long-term sustainability in the dynamic banking landscape.
