Fidelity Bank undertakes ₦29.6BN rights issue and ₦97.5bn public offer

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Ime Akpan

Fidelity Bank Plc has concluded all necessary arrangements to raise a total of up to ₦127,100,000,000.00 by way of a rights issue to existing shareholders and a public offer.

The bank said in a statement recently that the combined offer is a part of its 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 the Bank’s efforts to drive sustained growth and diversification of its earnings base.

The signing ceremony with respect to the combined offer was held at the bank’s headquarters in Lagos.
According to the statement, the bank’s shareholders had already approved the rights issue and public offer at the extra-ordinary general meeting held on August 11, 2023.

Under the Rights Issue, 3,200,000,000 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 January 5, 2024, at ₦9.25 per share.

For the public offer, 10,000,000,000 ordinary shares of 50 kobo each will be offered to the general investing public at ₦9.75 per share.

The statement further said 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 20 June 2024 and close on July 29, 2024.

The release quoted the MDCEO of Fidelity Bank, Mrs Nneka Onyeali-Ikpe as stating 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.

For his part, the chief executive of Stanbic IBTC Capital, Mr Oladele Sotubo, commended the bank’s management team for their commitment towards executing the combined offer.

He thanked the bank for trusting Stanbic IBTC Capital to lead and advised 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.

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.
It 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.

Financial products and services offered by Fidelity 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, and ATM services.

Others are electronic banking, agency banking and retail lending), money market activities, private banking/wealth management services, foreign exchange services, funds transfer services, and bank guarantees.

The bank operates in the United Kingdom through its wholly-owned subsidiary, FidBank UK Limited, located in London.