Fidelity Bank to raise N127bn through public offer, rights issue


Fidelity Bank says it has concluded all necessary arrangements to raise a total of N127.1 billion through rights issue to existing shareholders and a public offer.

In a statement on Wednesday, the bank said its board approved that N29.6 billion would be raised through rights issue, while N97.5 billion would come from a public offer.

“The combined offer is a part of the Bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN) on 28 March 2024,” the statement reads.

“Overall, the Bank expects that the capital raised would support the Bank’s efforts to drive sustained growth and diversification of its earnings base.


“Under the rights issue, 3,200,000,000 ordinary shares of 50 kobo each will be offered in the ratio of 1 new ordinary share for every 10 ordinary shares held as of 05 January 2024, at ₦9.25 per share.

“For the public offer, 10,000,000,000 ordinary shares of 50 kobo each will be offered to the general investing public at ₦9.75 per share.

“Stanbic IBTC Capital is the lead issuing house to the combined Offer, whilst the joint issuing houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited.”


Fidelity Bank said the acceptance and application lists for the rights issue and public offer are expected to open on June 20, 2024, and close on July 29, 2024.

Speaking on the capital raise, Nneka Onyeali-Ikpe, the managing director and chief executive officer of Fidelity Bank, said the proceeds of the combined offer will be applied towards investment in information technology (IT) infrastructure, business and regional expansion, and investment in product distribution channels.

On his part, Oladele Sotubo, chief executive of Stanbic IBTC Capital, commended Fidelity Bank’s management team for their commitment towards executing the combined offer.

He lauded their efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks.


Sotubo also said he is confident that the deal would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.

On March 29, the CBN announced an upward review of the minimum capital requirements for commercial, merchant and non-interest banks.

Under the recapitalisation programme, Fidelity Bank requires N370.70 billion to meet the N500 billion requirement, as its capital base stands at N129.71 billion, according to its unaudited first quarter (Q1) financial statement.

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