Fidelity Bank Plc has announced plans to raise capital through a mix of a public offer and a rights issue.
This information was released by the tier 2 bank via a press release on the NGX.
At the current share price of N7.3, the sale may bring in nearly N96.3 billion in additional capital for the bank.
According to Fidelity Bank, the corporation would increase its share capital to N22.60 billion as it seeks to explore strategic development.
This information was sent in a letter to Nigeria Exchange Limited that was signed by the company secretary, Ezinwa Unuigboje.
A portion of the declaration is as follows:
That up to 13,200,000,000 (thirteen billion and two hundred million) additional Ordinary Shares of N0.50 each be created, bringing the Company’s issued share capital, which is currently N16,000,000,000.00 (sixteen billion naira) and made up of 32,000,000,000 Ordinary Shares of N0.50 each, to a maximum of N22,600,000.00 (twenty-two billion, six hundred million naira).
That the company raises money from new and existing shareholders by a public offering of up to 10,000,000,000 ordinary shares and a rights issue of up to 3,200,000,000 ordinary shares, each of which represents one new share for every ten (10) shares owned.
That the shares issued in line with resolution (2) above be approved by the Board of Directors of the Company, and that authority is hereby granted; these shares will 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 empowered to carry out all lawful actions required to give effect to the aforementioned resolutions, including but not limited to making sure all regulatory requirements are met, obtaining all necessary approvals, and timely filing all regulatory returns.
The business stated that the decision to raise cash was made with strategic growth in mind, as it seeks to increase profitability, expand (domestically and internationally), and improve its digital capabilities.
The proposed resolutions are intended to make sure that the business can capitalize on new business possibilities, secure long-term profitability, and a competitive edge, and boost shareholder value.
The increase in share capital is contingent upon adoption at the company’s Extra Ordinary General meeting are being presented for shareholders’ approval.
