1 week ago
24
By Chukwuma Umeorah
Fidelity Bank Plc has secured shareholders’ approval to proceed with the second phase of its capital-raising initiatives, following the successful completion of the first phase, which saw its Public Offer and Rights Issue significantly oversubscribed. This development also includes an increase in the bank’s issued share capital from N26.7 billion to N36.7 billion, reinforcing its financial base as it progresses toward meeting the Central Bank of Nigeria’s (CBN) N500 billion minimum regulatory capital requirement for banks with international authorisation by March 31, 2026.
In a notice filed with the Nigerian Exchange Limited (NGX), Fidelity Bank disclosed that the approvals were granted during an Extraordinary General Meeting (EGM) held on February 6, 2025. Shareholders unanimously endorsed the creation of an additional 20 billion ordinary shares of N0.50 kobo each, increasing the bank’s issued share capital to N36.7 billion. They also authorised the Board of Directors to raise additional equity capital through various means, including private placements, rights issues, or public offers, in tranches and on terms deemed suitable by the Board, subject to regulatory approvals.
Managing Director and Chief Executive Officer of Fidelity Bank, Nneka Onyeali-Ikpe, expressed gratitude to investors for their confidence in the bank’s long-term strategy. “We are delighted to announce the successful completion of the first phase of our capital-raising initiatives through a Public Offer and Rights Issue, which were 237.92 per cent and 137.73 per cent oversubscribed, respectively. The positive result is a testament to the strength of the bank’s franchise in the capital market,” she said.
She further emphasised that the next phase of capital raising would position the bank for sustainable growth and improved service delivery. “As we go into the next phase of capital raising, we reaffirm our commitment to providing cutting-edge financial solutions to our customers and delivering sustainable returns to our stakeholders,” she said.
The first phase of the capital-raising exercise, which included a Public Offer and Rights Issue, demonstrated strong investor confidence. The Public Offer was oversubscribed by 237.92 per cent, attracting 107,588 valid applications for 23,768,724,000 ordinary shares valued at N231.7 billion. Similarly, the Rights Issue was oversubscribed by 137.73 per cent, with 6,903 valid applications for 4,407,252,795 ordinary shares amounting to N40.7 billion.
As part of its long-term expansion strategy, Fidelity Bank stated that the increase in share capital and additional fundraising initiatives would provide the necessary financial flexibility to deepen its digital transformation efforts, explore new growth opportunities, and expand its market reach. “This capital raise is a strategic move to strengthen our balance sheet, enhance our competitive position, and ensure we can continue to deliver exceptional value to our customers and stakeholders,” the bank noted.
The resolutions passed at the EGM also allow the Board to underwrite the capital-raising exercise, if necessary, to ensure full subscription.
The newly issued shares will be listed on the NGX and will rank pari passu with existing shares. Additionally, shareholders approved amendments to the bank’s Memorandum and Articles of Association to reflect the increased issued share capital and ensure compliance with regulatory requirements.
Fidelity Bank reaffirmed its commitment to executing the next phase of its capital-raising plan in compliance with the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), and the Corporate Affairs Commission (CAC) regulations.
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