Banking
Fidelity Bank Extends Deadline for N127.1bn Raise to August 12
By Adedapo Adesanya
The N127.1 billion combined offer of Fidelity Bank Plc, which commenced on Thursday, June 20, 2024, has been extended by two weeks to August 12 after securing regulatory approval.
Business Post had reported that the dual offer was to close today, Monday, July 29, 2024, but in a statement today, the lender said, “We are happy to announce that our combined offer now ends on the 12th of August 2024.”
The exercise has a public offer of N97.5 billion comprising the sale of 10.0 billion ordinary shares at a unit price of N9.75 and a rights issue of N29.6 billion consisting of the issuance of 3.2 billion ordinary shares at a unit price of N9.25 on the basis of one ordinary share for every 10 ordinary shares held as of January 5, 2024.
Fidelity Bank set out to raise the funds to invest in IT infrastructure, business and regional expansion, and product distribution channels.
Recall that in March 2024, the CBN announced revised minimum capital requirements for Nigerian banks and for lenders like Fidelity Bank with international presence, the benchmark was N500 billion.
The bank’s shareholders had already approved the rights issue and public offer at the extraordinary general meeting (EGM) held in August 2023.
Speaking at the company’s Fact Behind the Combined Offer, held at the Nigerian Exchange Limited (NGX) last month, the chief executive of the bank, Mrs Onyeka Onyeali-Ikpe, said the N127.1 billion offers plenty of opportunities.
“This presents an opportunity for a stronger financial institution, proceeds from the N127.1 billion will be instrumental in driving our business and regional expansion, expanding our footprint, and unlocking business opportunities,” she said.
The bank will also be expanding into other climes after making its foray with the acquisition of Union Bank in the United Kingdom, now known as FidBank (UK) Plc in 2023.
On the domestic front, Fidelity Bank said it is looking to capitalise on opportunities present in Nigeria by expanding its existing domestic businesses, adding that it would also undertake landmark projects and business initiatives that will redefine its business structure.
