5th June, 2024
By Rukayat Adeyemi
Fidelity Bank Plc says it has concluded plans to raise N127.1 billion by way of rights issue to existing shareholders and a public offer, which is a combined subscription.
The bank said this in a statement made available to newsmen on Wednesday in Lagos.
It said that the combined offer was part of the bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for commercial banks by the Central Bank of Nigeria (CBN).
The bank expressed optimism that the fresh capital would support its drive for sustainable growth and diversification of its earnings base.
The bank said that the signing ceremony of the combined offer was held in Lagos, revealing that its shareholders had already approved the rights issue and public offer at its Extra-Ordinary General Meeting held on Aug.11, 2023.
“Under the rights issue, 3.2 billion ordinary shares of 50 kobo each will be offered in the ratio of one new ordinary share for every 10 ordinary shares held as of Jan.5, 2024, at N9.25 per share, totalling N29.6 billion.
“For the public offer, 10 billion ordinary shares of 50 kobo each will be offered to the general investing public at N9.75 per share, totalling N97.5 billion.
“Stanbic IBTC Capital is the lead Issuing House to the combined offer, whilst the joint issuing Houses include Iron Global Markets Ltd. and Cowry Asset Management Ltd.
“Others are Afrinvest Capital Ltd., FSL Securities Ltd., Futureview Financial Services Ltd., Iroko Capital Market Advisory Ltd., Kairos Capital Ltd. and Planet Capital Ltd,” Iit added.
According to the bank, the acceptance and application lists for the rights issue and public offer are expected to open on June 20 and close on July 29.
The Managing Director of Fidelity Bank, Dr Nneka Onyeali-Ikpe, said that the proceeds of the combined offer would be channelled to investment in Information Technology infrastructure.
Onyeali-Ikpe revealed that the proceeds would also be invested in regional expansion and product distribution.
She noted that the rights circular for the issue, which contained a provisional allotment letter and the participation form, would be mailed directly to shareholders of the Bank.
The managing director stated that printed copies of the public offer prospectus could be obtained at the offices of Fidelity Bank and the issuing Houses during the public offer application period.
“All existing shareholders and prospective investors are advised to read documents and consult a Stockbroker, Fund/Portfolio manager, accountants, bankers and solicitors among other professional for guidance, where necessary,” she said.
The Chief Executive of Stanbic IBTC Capital, Mr Oladele Sotubo, commended Fidelity Bank’s management for their commitment towards executing the combined offer.
He lauded the management for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks.
Sotubo thanked the bank for the confidence reposed in Stanbic IBTC Capital to lead and advise on the landmark transaction.
He expressed confidence that the deal would encourage others to tap into the equity capital markets to raise funds to meet their strategic business needs.
Fidelity Bank Plc is a full-fledged commercial bank, operating primarily through branches and service centres across Nigeria, with authorisation from the CBN to operate internationally through branches located in foreign countries.
The bank provides a wide-range banking and other financial services to over 8.3 million corporate and individual customers from 250 businesses in the country with a total asset base of N6.2 trillion, as at Dec.31, 2023.