By Joke Kujenya
FIDELITY BANK Plc plans to handle an oversubscription of its ongoing N127.1 billion rights and public offer.
Investors have shown strong support, with early reports indicating high subscription levels.
The bank offers N3.2 billion ordinary shares at N9.25 each in a rights issue and 10 billion ordinary shares at N9.75 each in a public offer.
The rights issue is pre-allotted on the basis of one new share for every 10 existing shares held as of January 5, 2024.
The subscription period runs from June 20 to July 29, 2024, as a statement issued, notes.
Due to positive feedback, the bank has scheduled an Extraordinary General Meeting (EGM) for shareholders to approve the acceptance of surplus funds from the expected oversubscription.
The EGM will also address increasing the bank’s issued share capital from N22.6 billion to N26.7 billion to accommodate the potential oversubscription.
Shareholders will vote to allow the board to take necessary actions for absorbing the extra funds.
This move aims to strengthen the bank’s capital base, enabling it to capitalize on business opportunities and ensure long-term profitability and competitive advantage.
The net proceeds from the offer will fund investments in IT infrastructure, business expansion, and product distribution channels.
The bank says it aims to enhance its digital capabilities and maintain its position in the evolving banking industry.
Fidelity Bank reveals it has a diverse shareholder base with nearly 400,000 shareholders, none holding more than 5% of the issued share capital.
This diverse base, along with the bank’s strong performance and governance, has fueled investor confidence.
The bank has delivered an average annual capital gain of over 100% in the past five years and pays dividends twice a year.
Shareholders have expressed enthusiasm for the recapitalization, seeing it as an opportunity to buy into a strong banking stock at discounted prices.
The bank’s leadership emphasizes the importance of agility and adaptability in today’s fast-evolving financial landscape.
They assure that the additional capital will support the bank’s growth trajectory and commitment to delivering shareholder value.
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