Fidelity Bank To Launch Public Offer, Rights Issue On June 20

Fidelity Bank Plc, Nigeria’s sixth largest bank, is set to open its public offer and Rights Issue on Thursday, June 20, 2024.

This strategic move is part of the bank’s efforts to bolster its capital base in response to the revised minimum capital requirements introduced by the Central Bank of Nigeria (CBN) on March 28, 2024.

As a key component of this capital raising initiative, Fidelity Bank will host a “Facts Behind the Offer” presentation at the Nigerian Exchange (NGX) on the same day.

The Rights Issue involves the offering of 3.2 billion ordinary shares of 50 kobo each, in the ratio of one new ordinary share for every 10 ordinary shares held as of January 5, 2024. These shares will be priced at N9.25 per share.

Simultaneously, the public offer will make 10 billion ordinary shares of 50 kobo each available to the general investing public at a price of N9.75 per share.

Stanbic IBTC Capital serves as the Lead Issuing House for this combined offer. 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 period for both the Rights Issue and the Public Offer will commence on Thursday, June 20, and will close on Monday, July 29, 2024.

Fidelity Bank has meticulously planned this capital raise, aiming to generate up to N127.1 billion through the combined offer.

This initiative is integral to the bank’s strategy to enhance its share capital base, ensuring compliance with the CBN’s updated capital requirements for commercial banks in Nigeria.

This move underscores Fidelity Bank’s commitment to maintaining a robust capital structure, thereby enhancing its capacity to support economic growth and deliver value to its shareholders and customers.