Fidelity Bank announces plan to increase share capital to N36.7bn

n 2024, Fidelity Bank successfully raised capital through a public offer of 10 billion ordinary shares and a rights issue targeting existing shareholders

Fidelity bank announces plan to increase share capital to N36.7bn

 

Fidelity Bank Plc has revealed plans to boost its issued share capital from N26.7 billion to N36.7 billion as part of its long-term growth strategy. This decision, disclosed in a statement by the company secretary, Ezinwa Unuigboje, was submitted to the Nigeria Exchange Limited on Thursday.

The proposed capital increase will be put to a vote at the bank’s Extraordinary General Meeting scheduled for February 6. The resolution seeks to create an additional 20 billion ordinary shares, each priced at 50 kobo, bringing the total to 73.4 billion ordinary shares.

According to Unuigboje, the board of directors has been granted authority to cancel unallotted shares and to make further adjustments to the share capital if required to support future equity-raising initiatives. This move is part of Fidelity Bank’s broader plans to strengthen its financial foundation and expand its market presence.

Earlier in 2024, the bank successfully raised capital through a public offer of 10 billion ordinary shares and a rights issue targeting existing shareholders. The rights issue was priced at N9.25 per share, with a basis of 1 new share for every 10 shares held by existing investors.

Fidelity Bank is now seeking approval from shareholders for additional capital raises through a combination of private placements, rights issues, and public offers. The board has proposed that up to 30 percent of the new share capital equivalent to 20 billion ordinary shares be issued through private placements, with these shares to be listed on the Nigerian Exchange Limited once the necessary regulatory approvals are secured.

Unuigboje emphasized that these steps are designed to reinforce the bank’s capital base, improve operational efficiency, and position Fidelity Bank for future opportunities in the competitive financial sector.

Fidelity Bank’s Managing Director/CEO, Dr. Nneka Onyeali-Ikpe, however, expressed satisfaction with the bank’s recent performance, highlighting its ability to exceed targets from its just-completed combined offer.

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