Business a.m.
Fidelity Bank Plc has completed all required preparations for a fundraising endeavour, with the goal of raising a total sum of N127,100,000,000.00 (one hundred twenty-seven billion, one hundred million naira) through a combined rights issue for its existing shareholders and a public offer, collectively referred to as a combined offer.
The commercial banking company explained that the move is part of a larger strategy to comply with the updated minimum capital requirements set forth by the Central Bank of Nigeria (CBN) on 28 March 2024. The bank believes that the funds generated through the combined offer would aid in boosting the bank’s share capital base, supporting its ongoing efforts to sustain growth and achieve diversification within its earnings structure.
The signing ceremony for the combined offer was held in the boardroom of Fidelity Bank’s headquarters in Lagos on Wednesday, 5 June 2024. Prior to this, the bank’s shareholders had already approved the rights issue and public offer at the extra-ordinary general meeting held on Friday, 11 August 2023.
As part of the rights issue component of the combined offer, Fidelity Bank is set to offer a total of 3,200,000,000 (three billion two hundred million) ordinary shares of 50 kobo each to its existing shareholders at a price of N9.25 per share, based on a ratio of one new ordinary share for every 10 ordinary shares held as of 05 January 2024.
In addition, under the public offer component of the combined offer, the bank plans to offer a total of 10 billion ordinary shares of 50 kobo each to the general investing public at a price of N9.75 per share.
The combined offer is being facilitated by Stanbic IBTC Capital, acting as the lead issuing house, in collaboration with a group of joint issuing houses that includes 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.The Acceptance and application lists for the rights issue and public offer are expected to open on Thursday, 20 June 2024 and close on Monday, 29 July 2024.
Speaking at the signing ceremony, Nneka Onyeali-Ikpe, managing director and chief executive officer of Fidelity Bank PLC, unveiled the Bank’s plans to allocate the proceeds from the combined offer towards strategic investments aimed at strengthening the bank’s IT infrastructure, expanding its business and regional footprint, and enhancing its product distribution channels
Oladele Sotubo, chief executive of Stanbic IBTC Capital, commended the management team of Fidelity Bank for their resolute focus on successfully completing the combined offer. He further commended the bank’s management for their proactive approach towards fulfilling the CNM’s revised minimum capital requirements for commercial banks
Sotubo also took the opportunity to extend his gratitude to Fidelity Bank for entrusting Stanbic IBTC Capital with the responsibility of leading and advising on the transaction.
He shared his conviction that the successful execution of the combined offer would set a positive precedent, inspiring other corporate entities to consider the equity capital markets as a viable source of funding to fuel their strategic business aspirations.
According to the bank’s official statement, the rights circular, which contains a provisional allotment letter and the participation form for the rights issue, will be directly mailed to shareholders of the bank. For interested investors in the public offer, printed copies of the public offer prospectus can be acquired during the public offer application period at the offices of Fidelity Bank and the participating issuing houses.
Fidelity Bank and the participating issuing houses have also issued a call for existing shareholders and prospective investors to carefully peruse the rights circular and prospectus, ensuring that they fully understand the terms and conditions of the combined offer before subscribing.
For further guidance and clarification, shareholders and prospective investors are advised to consult their trusted financial and legal advisors, including stockbrokers, fund/portfolio managers, accountants, bankers, solicitors, or any other professionals familiar with the financial markets, prior to submitting their subscription.
