Fidelity Bank Extends Offer Period Amid Capital Raise Initiative

Fidelity Bank Plc has announced an extension of its ongoing combined offer, comprising a public offering and rights issue, until August 12, 2024.

This extension, approved by the Securities and Exchange Commission (SEC), allows investors additional time to participate in the bank’s capital-raising efforts, initially set to close on July 29, 2024.

The combined offer, which began on June 20, 2024, aims to raise up to N127.1 billion. This initiative includes a Rights Issue, offering 3.2 billion ordinary shares at N9.25 per share to existing shareholders, and a Public Offer of 10 billion ordinary shares at N9.75 per share to the general public.

The capital raised will help Fidelity Bank meet the revised minimum capital requirements set by the Central Bank of Nigeria (CBN) in March 2024.

A significant portion of the proceeds will be allocated to enhancing the bank’s IT infrastructure (N19.009 billion) and expanding its business and regional presence (N66.53 billion). Other investments include branch renovations, automated teller machines (ATMs), and point on sale (POS) systems, alongside improvements in cybersecurity, software, and hardware.

Fidelity Bank also plans to use the funds to boost its lending capabilities, allocating N9.504 billion to retail lending, N14.25 billion to small and medium enterprises (SMEs), and N40.39 billion to the corporate and commercial segments. The bank expects these investments to be completed within 48 months, supporting its growth and diversification strategies.

Stanbic IBTC Capital leads the issuing houses for this offering, with several other firms participating as joint issuing houses.