By Ayomide Otitoju
Fidelity Bank Plc has announced plans to increase its issued share capital from N26.7 billion to N36.7 billion, as disclosed in a regulatory filing by Company Secretary Ezinwa Unuigboje to the Nigeria Exchange Limited on Thursday.
Capital Increase and Extraordinary General Meeting
The proposed increase will be tabled at the bank’s Extraordinary General Meeting (EGM) scheduled for February 6, 2025. The plan involves the creation of 20 billion additional ordinary shares of 50 kobo each, increasing the total issued share capital to 73.4 billion ordinary shares.
Unuigboje noted that the board is authorized to:
Cancel any unallotted shares.
Further increase the share capital if necessary to support future equity-raising initiatives.
Past Capital-Raising Efforts
In 2024, Fidelity Bank conducted a public offer of 10 billion ordinary shares at N9.75 per share and a rights issue of 3.2 billion ordinary shares at N9.25 per share, on the basis of 1 new share for every 10 shares held by existing shareholders.
Future Capital-Raising Strategies
The bank is seeking shareholders’ approval to raise additional capital through various methods, including:
Private placements
Rights issues
Public offers
Or a combination of these.
Up to 30% of the existing issued share capital, amounting to 20 billion shares, may be offered via private placements. These shares, once issued, will rank equally with the bank’s existing ordinary shares and will be listed on the Nigeria Exchange Limited, subject to regulatory approvals.
Strengthening Capital Base
This strategic move aims to bolster Fidelity Bank’s capital base, enhance operational efficiency, and position it for future growth opportunities in the financial sector. The bank’s board has been authorized to take all necessary steps, including:
Executing agreements.
Engaging professional advisers.
Securing approvals from the Securities and Exchange Commission (SEC) and the Corporate Affairs Commission (CAC).
CEO Comments
Fidelity Bank’s Managing Director/CEO, Dr. Nneka Onyeali-Ikpe, highlighted the bank’s success in its recent capital-raising initiatives, noting that the bank surpassed its targets in the combined offer.
The development underscores Fidelity Bank’s commitment to strengthening its financial position and driving sustainable growth in Nigeria’s competitive banking sector.
