Fidelity Bank Plc will unveil it’s N127.1bn capital raise via a public offer and rights issue on June 20, 2024.
The bank has completed the necessary paperwork to raise N127.1 billion through a public offer and rights issue, aimed at strengthening its capital base and meeting the Central Bank of Nigeria’s enhanced capitalization standards.
The bank plans to raise N97.5 billion through a public offer and an additional N29.6 billion through a rights issue, which offers existing shareholders the opportunity to purchase one new share for every 10 shares held at a price of N9.25 per share.
On March 28, the Central Bank of Nigeria mandated commercial lenders in the country to shore up their capital base within the next 24 months, to prepare them for a $1tn economy, which the government is targeting.
Fidelity Bank stated that the rights issue will involve N3.2bn ordinary shares of 50 kobo each, offered at N9.25 per share.
According to the bank, existing shareholders will have the opportunity to acquire one new ordinary share for every 10 ordinary shares held as of January 5, 2024.
It added that the public offer would make N10bn ordinary shares of 50 kobo each available to the general investing public at N9.75 per share.
Fidelity Bank Plc has set July 29, 2024, as the closing date for the acceptance and application period for both the rights issue and the public offer.
According to Fidelity Bank, Stanbic IBTC Capital is leading the issuance, supported by a consortium of joint issuing houses, including Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, and Iroko Capital Market.
In addition, Fidelity Bank Plc has scheduled a ‘Facts Behind the Offer’ presentation for June 20 at the Nigerian Exchange, where it will provide a detailed overview of the offer and engage with potential investors, offering them an opportunity to gain a deeper understanding of the capital raise.
“This presentation is a crucial part of Fidelity Bank’s strategy to communicate the benefits and potential returns of this capital-raising effort to stakeholders,” it noted.
