Fidelity Bank has unveiled plans to boost its issued share capital from N22.6 billion to N26.7 billion, following new guidelines set by the Central Bank of Nigeria (CBN).
The bank intends to achieve this by issuing up to 8.2 billion additional ordinary shares, each valued at 50 Kobo. This decision was disclosed in a corporate notice filed with the Nigeria Exchange Limited and signed by Ezinwa Unuigboje, the Company Secretary, on Thursday.
To accommodate potential oversubscription, Fidelity Bank will issue 5 billion new shares through a public offer and 3.2 billion new shares through a rights issue. The combined offer, which commenced on June 20 and will close on July 29, ensures that the new shares will rank equally with existing shares, thereby avoiding any dilution in value for current shareholders.
An Extraordinary General Meeting is scheduled for July 26, where shareholders will vote on the proposed increase in share capital.
Ezinwa highlighted that the additional capital is essential for the bank to invest in Information Technology infrastructure, expand domestic and international business operations, and enhance product distribution channels. These strategic investments aim to secure long-term profitability, maintain competitive advantage, and increase shareholder value, positioning Fidelity Bank for sustainable growth.
The bank's board of directors has been authorized to seek approvals from regulatory bodies such as the Securities and Exchange Commission, the CBN, and the Corporate Affairs Commission to facilitate this capital raise.
Fidelity Bank recently launched a N127.10 billion rights issue and public offer, marking it as the first bank to comply with the CBN's recapitalization directive issued in March. The public offer includes 10 billion ordinary shares at N9.75 per share, while the rights issue offers 3.2 billion ordinary shares at N9.25 per share, as reported by PUNCH.
