Fidelity Bank Plc launched its N127.10 billion rights issue and public offer on Thursday, becoming the first bank to go public after the Central Bank of Nigeria’s recapitalisation decision was announced in March.
On Thursday, Fidelity Bank launched a public offering of 10 billion ordinary shares of 50 kobo each at N9.75 per share, as well as a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25, according to The Punch.
At the public offer and rights issue facts behind the combined offer presentation at the Nigerian Exchange Limited on Thursday, Fidelity Bank’s Managing Director/Chief Executive Officer, Nneka Onyeali-Ikpe, stated that the financial institution’s N127.10bn capital raising would be regarded as a trailblazer in the banking industry’s capitalisation drive.
Onyeali-Ikpe said, “Given that Fidelity Bank has already started the process of raising additional capital ahead of CBN’s directive, requiring the banks to raise a minimum capital base of N200bn for national banks and N500bn for banks with international operations like ours, amongst other capital requirements.
“This didn’t come as a surprise to us. As for us at Fidelity Bank, the CBN recapitalization directive presents a significant opportunity for a stronger and more resilient banking industry.
“We have embraced the challenge as a catalyst to propel us, towards a long-term vision of becoming a market leader across every product that we offer and segment that we sell, not just in Nigeria, but as an international bank.”
She remarked that the funds from the capital raising exercise will be critical in accomplishing the company’s strategic growth goals.
She noted, “The proceeds from this N127.1bn capital raise via the rights issue and public offer will be instrumental in achieving our strategic growth plan. These funds will be deployed to drive the following growth aspiration, business and regional expansion within and outside Nigeria, technological transformation, diversify and grow our earning base and lastly, it will help us to increase our capacity to support our customers.”
The Chairman of the bank, Mustapha Chike-Obi, represented by an independent director, Isa Mohammed asserted that the bank will surpass the N500 billion capital requirement for its international licence.
He stated, “This is the first of a multi-stage approach that we intend to take. Not only to attain the N500bn target but we aspire to surpass it. Today, we are here to listen to a bank that has grown exponentially in four years.
“Perhaps, the kind of growth that we have had has not been seen in the financial sector and it is based on strong fundamentals, strict corporate governance and on numbers that are sustainable over the short to long terms and this has been demonstrated. Not only in our balance sheet footing, in terms of our profitability but also concerning the market. We have outperformed the All-Share Index twice in the last three years and also outperformed the banking index four times over the last three years with share price growth of over 250 per cent.”
Meanwhile, the Executive Director of Fidelity Bank, Mr Stanley Amuchie stated that the commercial bank has a solid market position in the Nigerian banking sector, emphasizing that despite substantial changes in the competitive landscape of the Nigerian banking sector, it has continued to perform successfully.
“Due to the advances in technology and rapid evolution of banking business, Fidelity Bank must be properly positioned to remain a competitive and forward-looking institution,” he stated.
In his remark, the acting CEO of the NGX, Jude Chiemeka, added, “We are delighted that Fidelity Bank has chosen this platform to communicate its financial performance, operational development, and strategic plans to undertake capital raise. Your presence here underscores your willingness to provide information to the market.
