Fidelity Bank to raise fresh capital via public offer, rights issue (

Fidelity Bank to raise fresh capital via public offer, rights issue


Fidelity Bank will raise fresh capital through public share sale and rights issue after securing key shareholders’ approval at an extra-ordinary meeting next month, the lender said Wednesday.

Up to 10 billion shares will be up for sale through a public offering, while a maximum of 3.2 billion shares are to be offered to existing shareholders in the proportion of one new share for every ten currently held.

The move will increase Fidelity Bank’s total issued shares by roughly 46 per cent when completed.

Regulatory approvals must be in place before the deal can be delivered.

The bank “requires additional capital for increased profitability, expansion (domestic and international) and enhancement of its digital capabilities, “ Fidelity Bank stated in a note to the Nigerian Stock Exchange.

That aligns with the broad plan by the lender to gain tier-1 status by 2025, when it hopes to have joined the rank of Nigeria’s biggest banks by assets.

The elite category currently comprises FBN Holdings, United Bank for Africa, Guaranty Trust Holding Company, Access Holdings, and Zenith Bank, a group popularly referred to by the initials “FUGAZ.”

Last August, Fidelity Bank agreed with rival Union Bank to buy the latter’s UK subsidiary after the Central Bank of Nigeria gave the go-ahead.

The capital raise is coming five months after the lender sourced about N14 billion through a private placement where it sold over 3 billion shares to two investors.

Fidelity Bank’s shares have returned 72.4 per cent this year and 135 per cent in the past 52 weeks and are listed at N7.15 per unit in Lagos.

Share this:

    Support PREMIUM TIMES’ journalism of integrity and credibility

    Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

    For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

    By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

    TEXT AD: Call Willie – +2348098788999

    This content contains 0 videos, 4 images, 16 links, 1 embeds, 350 words and was first published on Premium Times Nigeria


    2k Points

    What do you think?

    2k Points

    Leave a Reply