Fidelity Bank Plc has announced plans to raise capital via a combination of a public offer and a rights issue.
The tier 2 bank made this announcement via a press release on the NGX.
At the current share price of N7.3, the sale could fetch the bank fresh capital of about N96.3 billion.
Fidelity Bank says it is to raise its share capital to N22.60 billion as the company looks to explore strategic growth.
This was disclosed in a statement signed by Company Secretary Ezinwa Unuigboje which was sent to Nigeria Exchange Limited.
An excerpt from the statement reads:
That the issued share capital of the Company currently N16,000,000,000.00 (Sixteen Billion Naira) made up of 32,000,000,000 Ordinary Shares of N0.50 each, be increased up to N22,600,000,00.00 (Twenty-two Billion, Six Hundred Million Naira) by the creation of up to 13,200,000,000 (Thirteen Billion, and Two Hundred Million) additional Ordinary Shares of N0.50 each.That the Company undertakes a capital raising exercise via a Public Offer for up to 10,000,000,000 Ordinary Shares and Rights Issue of up to 3,200,000,000 Ordinary Shares representing 1 (one) new share for every ten (10) shares held, to new and existing shareholders respectively.
That the Board of Directors of the Company be and is hereby authorised to allot the shares issued in accordance with resolution (2) above, which shall rank pari-passu with the Company’s existing issued shares, subject to the receipt of relevant regulatory approvals.
That the Board of Directors be and is hereby authorized to perform all such lawful acts that are necessary to give effect to the above-listed resolutions including but not limited to ensuring compliance with all regulatory procedures and requirements, obtaining all required approvals and filing within time, all regulatory returns in relation to the above resolutions.”
Exploring Strategic Growth
The company noted that the decision to raise share capital is in view of strategic growth as the company aims for increased profitability, expansion (domestic and international) and enhancement of its digital capabilities.
The proposed resolutions are aimed at ensuring that the company can take advantage of emerging business opportunities and secure long-term profitability and competitive advantage while ensuring increased shareholder value.
The share capital increase is subject to adoption at the company’s Extra Ordinary General meeting are being presented for shareholders’ approval.