Fidelity Bank Plc, also known as “Fidelity Bank” or the “Bank,” has completed all required preparations to raise up to ₦127,100,000,000.00 (one hundred twenty-seven billion, one hundred million naira) through a public offer and a rights issue to current shareholders (the “Combined Offer”). The Central Bank of Nigeria (“CBN”) on March 28, 2024, updated the minimum capital requirements for Nigerian commercial banks. As part of this goal, the Bank is increasing its share capital base through the Combined Offer. In general, the Bank anticipates that the capital raised will help the Bank in its endeavors to promote steady expansion and diversification of its revenue stream.
On Wednesday, June 5, 2024, the signing ceremony for the Combined Offer took place in the board room of Fidelity Bank’s Lagos headquarters. The Public Offer and Rights Issue were already authorized by the Bank’s shareholders during the Extra-Ordinary General Meeting on Friday, August 11, 2023. As part of the rights issue, 3,200,000,000 (three billion two hundred million) 50 kobo common shares will be made available for purchase at a price of ₦9.25 per share, with one new common share being issued for every ten existing common shares as of January 5, 2024. 10,000,000,000 common shares, each worth 50 kobo, will be made available to the general public for purchase at a price of ₦9.75 per share during the public offer.
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 Rights Issue and Public Offer are expected to open on Thursday, 20 June 2024 and close on Monday, 29 July 2024.
At the Signing Ceremony, Managing Director and Chief Executive Officer, Fidelity Bank PLC, Dr. Nneka Onyeali-Ikpe, disclosed that the proceeds of the Combined Offer will 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, Dele 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. Printed copies of the Public Offer Prospectus can be obtained at the offices of Fidelity Bank and the Issuing Houses during the Public Offer Application Period.
When in doubt, seek advice from your stockbroker, fund/portfolio manager, accountant, banker, solicitor, or any other professional adviser before subscribing. This applies to both current shareholders and potential investors.
