Fidelity Bank plan issuing additional N78.35bn worth of shares

Onwubuke Melvin
Onwubuke Melvin

Fidelity Bank will issue an additional 8.2 billion shares, valued at approximately N78.35 billion, in anticipation of an oversubscription to its joint offering.

This was disclosed in the notice of its extraordinary general meeting slated for July 26 filed by the bank with NGX.

According to the notice, one of the motions to be considered at the EGM is authorizing the bank to receive additional money from its ongoing public offering and rights issue.

In the notice, an increase in share capital is one of the resolutions to be considered. The bank intends to raise its share capital from NGN22.6 billion, represented by 45.2 billion ordinary shares of 50 Kobo each, to NGN26.7 billion, represented by 53.4 billion ordinary shares.

This increase will be done by issuing up to 8.2 billion extraordinary shares of 50 Kobo each, ranking equally with the current shares. Specifically, 5 billion new shares will be distributed through the Public Offer and 3.2 billion through the Rights Issue.

Issuing 5 billion new shares at N9.75 per share to prospective shareholders will generate N48.75 billion.

Furthermore, the rights issuance of 3.2 billion new shares at N9.25 each will raise N29.6 billion, taking the total expanded offering to N78.35 billion.

The increase in share capital is intended to accommodate potential oversubscription of the joint offering, as the bank is racing to meet the N500 billion minimum capital requirement by March 2026.

Fidelity Bank became the first bank to participate in the CBN’s recapitalization exercise, launching a joint offering on June 20 and closing on July 29, 2024.

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