Fidelity Bank Plc will launch its N127.1bn capital raise via a public offer and rights issue on June 20, 2024.
The lender stated that it had signed the necessary documentation to raise about N127.1bn from a public offer and rights issue to its existing shareholders to raise its capital base in line with the Central Bank of Nigeria’s fresh capitalisation directive.
The bank is eyeing N97.5bn in fresh funds from its public offer and N29.6bn from its rights issue, which offers existing shareholders one new ordinary share for every 10 ordinary shares held as of January 5, 2024, at N9.25 per share.
On March 28, the Central Bank of Nigeria mandated commercial lenders in the country to shore up their capital base within the next 24 months, to prepare them for a $1tn economy, which the government is targeting.
Fidelity Bank stated that the rights issue will involve N3.2bn ordinary shares of 50 kobo each, offered at N9.25 per share.
According to the bank, existing shareholders will have the opportunity to acquire one new ordinary share for every 10 ordinary shares held as of January 5, 2024.
It added that the public offer would make N10bn ordinary shares of 50 kobo each available to the general investing public at N9.75 per share.
It was declared that the acceptance and application period for both the rights issue and the public offer will close on July 29, 2024.
According to Fidelity Bank, Stanbic IBTC Capital is leading the issuance, supported by a consortium of joint issuing houses, including Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, and Iroko Capital Market.
Meanwhile, the bank will be holding a ‘Facts Behind the Offer’ presentation at the Nigerian Exchange on June 20, to provide comprehensive details and engage with potential investors.
“This presentation is a crucial part of Fidelity Bank’s strategy to communicate the benefits and potential returns of this capital-raising effort to stakeholders,” it noted.
