Fidelity Bank seeks NGX approval to raise N32bn fresh capital

As part of its effort to explore strategic growth, Fidelity Bank Plc has through its Stockbrokers, APT Securities & Funds Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a Rights Issue of 3.2 billion ordinary shares of 50 kobo each at N10 per share.

According to the NGX weekly report, the right issue is based on one (1) new ordinary share for every ten (10) existing ordinary shares held as of the close of business on Friday, 5 January 2024.

“Trading License Holders are hereby notified that Fidelity Bank Plc (Fidelity or the Bank) has through its Stockbrokers, APT Securities & Funds Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a Rights Issue of Three Billion, Two Hundred Million (3,200,000,000) ordinary shares of 50 kobo each at N10 per share based on one (1) new ordinary share for every ten (10) existing ordinary shares held as at the close of business on Friday, 5 January 2024. The Qualification Date for the Rights Issue is 5 January 2024”.

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Fidelity Bank Plc disclosed plans to inflate its share capital from N16 billion to N22.6 billion, according to recent resolutions from its Extra-Ordinary General Meeting which was held virtually on August 11, 2023.

Fidelity’s share capital is poised to surge, with the creation of a whopping 13.2 billion additional ordinary shares each priced at N0.50.

In a bid to increase its financial muscle, the bank will launch a public offer for up to 10 billion ordinary shares. Additionally, a rights issue will allow existing shareholders to snap up 3.2 billion ordinary shares. Intriguingly, for every ten shares an investor holds, they can bag one new share.

The resolutions have equipped Fidelity Bank’s Board of Directors with the green light to allocate the freshly issued shares, which will stand toe-to-toe with the bank’s existing shares, subject, of course, to obtaining the nod from regulatory bodies.