Fidelity Bank opens N127.1bn combined rights, public offer

Board/Management team of Fidelity Bank and NGX at the Bank’s Facts Behind The Combined Offers presented to capital market stakeholders on Tuesday in Lagos.

Lagos, June 20, 2024 (NAN) Fidelity Bank Plc, on Thursday, opened application list for its rights issue and public offer by way of combined subscription, totalling N127.1 billion, to meet the Central Bank of Nigeria’s (CBN’s) recapitalisation directive.

Dr Nneka Onyeali-Ikpe, the Managing Director of Fidelity Bank, announced this at the Bank’s Facts Behind The Combined Offers, presented to capital market stakeholders on Tuesday in Lagos.

Onyeali-Ikpe said that the acceptance and application lists for the rights issue and public offer, which opened on June 20, would close on July 29.

She explained that under the rights issue, 3.2 billion ordinary shares of 50 kobo each was 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, the managing director stated that 10 billion ordinary shares of 50 kobo each were offered to the general investing public at N9.75 per share, totalling N97.5 billion.

“Fidelity is the first to launch this offer out of the many, following the recapitalisation announcement by the CBN in March.

“The bank has already started the process of raising additional capital ahead of the CBN’s directive, requiring banks to raise minimum capital base of N200 billion for national banks.

“Also, N500 billion for banks with international operations like ours, amongst other capital requirements.

“This did not come as a surprise to us. Our capital raising process was practically initiated after obtaining approval from our shareholders in August 2023.

“The exercise is part of our strategic growth plan to raise additional capital to meet our growth needs,” she added.

The managing director lauded the CBN recapitalisation directive, adding that it presented a significant opportunity for a stronger and more resilient banking industry.

Onyeali-Ikpe said that the proceeds from the capital raise would be instrumental in achieving the bank’s strategic growth plan.
According to her, the proceed will expand the bank’s s footprints within and outside Nigeria to serve as a product customer base and unlock new market opportunities.

She said that the financial institution was also committed to leveraging proprietary technology to improve operational efficiency and deliver exceptional customer service.

By investing in IT infrastructure and product distribution channels, Onyeali-Ikpe said that the bank aims to diversify its earnings base through digitalisation and business expansion.

“The offer will increase our capacity to support our customers and their businesses.

“In summary, this capital raise will help our customers to grow their businesses to thrive, and the economy to prosper.

“We appreciate the NGX for their continued support and for providing us a platform to raise capital to achieve our goals,” she said.

Commenting, Mr Ahonsi Unuigbe, Chairman, NGX, lauded the bank’s board and management on the capital raise initiative, saying it underscores its dedication towards enhancing its operational efficiency and market presence.

The post Fidelity Bank opens N127.1bn combined rights, public offer appeared first on Guardian Nigeria News.

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