Fidelity Bank Plc has announced plans to increase its issued share capital from N26.7bn to N36.7bn.
This development was disclosed in a statement filed on the Nigeria Exchange Limited by the company secretary, Ezinwa Unuigboje, on Thursday.
According to the statement, this resolution will be presented at the bank’s Extraordinary General Meeting, set for February 6.
Unuigboje stated that the proposed increase will involve the creation of 20bn additional ordinary shares of 50 kobo each, bringing the total issued share capital to 73.4bn ordinary shares, adding that the bank’s board of directors has been authorised to cancel any unallotted shares or further increase the share capital if necessary to support future equity-raising transactions.
In 2024, the bank undertook a capital-raising exercise by way of a public offer of 10 billion ordinary shares of 50 Kobo each at N9.75 per share to prospective shareholders and a rights issue of 3.2 billion ordinary shares of 50 Kobo each to existing shareholders at N9.25 per share on the basis of 1 new share for every 10 shares.
He added that Fidelity Bank is also seeking shareholders’ approval to raise additional capital to the newly issued share capital through various means, including private placements, rights issues, public offers, or a combination of these options. The board is empowered to determine the tranches, pricing, and terms of such capital-raising activities, subject to obtaining the necessary regulatory approvals.
The board has proposed that up to 30 per cent of the company’s existing issued share capital, amounting to 20bn ordinary shares, may be offered through private placements. These shares, upon issuance, will rank side by side with the bank’s existing ordinary shares and will be listed on the Nigerian Exchange Limited after obtaining the requisite regulatory approvals.
The board has been further authorised to undertake all necessary steps to give effect to these resolutions, including executing agreements, appointing professional advisers, obtaining regulatory approvals from bodies such as the Securities and Exchange Commission and the Corporate Affairs Commission, and filing all required documents.
Unuigboje noted that the move is part of Fidelity Bank’s strategic plan to strengthen its capital base, enhance operational efficiency, and position itself for future growth opportunities in the financial sector.
The PUNCH reported that the Managing Director/Chief Executive Officer of Fidelity Bank, Dr Nneka Onyeali-Ikpe, said the bank was able to meet and surpass its target from the just-concluded combined offer.
