Fidelity Bank Plc said on Wednesday that it has concluded arrangements to raise N127.1 billion by way of a rights issue to existing shareholders and a public offer.
The combined offer is a part of the bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN) on 28 March 2024.
Overall, the bank expects that the capital raised would support its efforts to drive sustained growth and diversification of its earnings base.
The signing ceremony with respect to the combined offer was held at the Board Room of the bank’s headquarters in Lagos on Wednesday. The bank’s shareholders had already approved the combined offer at the Extra-Ordinary General Meeting held on Friday, 11 August 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 5 January 2024, at N9.25 per share. For the public offer, 10 billion ordinary shares of 50 kobo each will be offered to the investing public at N9.75 per share.
Stanbic IBTC Capital is the lead issuing house to the combined offer, whilst the joint issuing houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited. The acceptance and application lists for the combined offer are expected to open on Thursday, 20 June 2024 and close on Monday, 29 July 2024.
At the signing ceremony, Managing Director/Chief Executive Officer of Fidelity Bank PLC, Dr. Nneka Onyeali-Ikpe disclosed that the proceeds of the combined offer would be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.
The Chief Executive of Stanbic IBTC Capital, Oladele Sotubo commended Fidelity Bank’s management team for their commitment towards executing the combined offer. He lauded their efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks. While thanking the bank for trusting Stanbic IBTC Capital to lead and advise on this landmark transaction, Sotubo expressed confidence that the deal would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.
The rights circular for the issue, which contains a provisional allotment letter and the participation form, will be mailed directly to shareholders of the bank.
The bank said that printed copies of the public offer prospectus can be obtained at its offices, and the issuing houses during the public offer application period.
Fidelity Bank Plc is a full-fledged commercial bank, operating primarily through branches and service centres located across Nigeria, with authorisation from the CBN to operate internationally through branches located in foreign countries. The Bank provides a range of banking and other financial services to over 8.3 million corporate and individual customers from 250 business offices in the country with a total asset base of ₦6.2 trillion, all as of 31 December 2023. The Bank also operates in the United Kingdom through its wholly-owned subsidiary, FidBank UK Limited, located in London.
Financial products and services offered by the bank include granting of loans and advances, equipment leasing, corporate and trade finance operations, treasury and investment services, retail banking (including current and savings accounts, debit cards, ATM services, electronic banking, agency banking and retail lending), money market activities, private banking/wealth management services, foreign exchange services, funds transfer services, and bank guarantees.
