LAGOS, Nigeria (VOICE OF NAIJA)-Fidelity Bank Plc to Launch N127.1bn Capital Raise through Public Offer and Rights Issue on June 20, 2024.
The lender stated that it had signed the necessary documentation to raise about N127.1bn from a public offer and rights issue to its existing shareholders to raise its capital base in line with the Central Bank of Nigeria’s fresh capitalisation directive.
The bank aims to raise N97.5bn through its public offer and N29.6bn via its rights issue, offering existing shareholders one new ordinary share for every 10 held as of January 5, 2024, at N9.25 per share.
On March 28, the Central Bank of Nigeria directed commercial lenders to strengthen their capital bases within 24 months in preparation for Nigeria’s targeted $1tn economy.
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Fidelity Bank announced that its rights issue will involve N3.2 billion ordinary shares of 50 kobo each priced at N9.25 per share, with existing shareholders eligible to purchase one new ordinary share for every 10 held as of January 5, 2024.
The public offer will involve N10 billion ordinary shares of 50 kobo each, available to the general investing public at N9.75 per share.
The acceptance and application period for both the rights issue and the public offer will close on July 29, 2024.
According to Fidelity Bank, Stanbic IBTC Capital is leading the issuance, supported by a consortium of joint issuing houses, including Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, and Iroko Capital Market.
Meanwhile, the bank will host a ‘Facts Behind the Offer’ presentation at the Nigerian Exchange on June 20 to provide detailed information and engage with potential investors.
“This presentation is a crucial part of Fidelity Bank’s strategy to communicate the benefits and potential returns of this capital-raising effort to stakeholders,” it noted.