Fidelity Bank Plc Plans to Boost Share Capital to N36.7 Billion

Fidelity Bank Plc has declared its intention to elevate its issued share capital from N26.7 billion to N36.7 billion. This decision was made public through a statement submitted to the Nigeria Exchange Limited by the bank’s company secretary, Ezinwa Unuigboje, on Thursday.

The increase in share capital will be proposed to shareholders at an extraordinary general meeting scheduled for February 6. The proposal involves creating an additional 20 billion ordinary shares at 50 kobo each, thereby increasing the total to 73.4 billion ordinary shares. The board of directors has the authority to cancel any unallotted shares or further augment the share capital to facilitate future equity-raising activities.

In 2024, Fidelity Bank executed a capital-raising strategy that included:

A public offer of 10 billion ordinary shares priced at N9.75 each for prospective investors.
A rights issue of 3.2 billion ordinary shares at N9.25 each, offered to existing shareholders on a basis of one new share for every ten held.

Beyond this, Fidelity Bank is also seeking shareholder consent to raise further capital through diverse methods, such as private placements, rights issues, or public offers. The board will decide the specifics like tranches, pricing, and terms, pending regulatory approval.

Part of the strategy includes offering up to 30% of the current issued share capital, or 20 billion ordinary shares, via private placements. These new shares will be listed on the Nigerian Exchange Limited alongside existing shares after receiving the necessary approvals.

The board has been granted full authority to manage all aspects of this capital increase, including legal and regulatory compliance, appointing advisors, and ensuring all necessary documentation is filed with relevant bodies like the Securities and Exchange Commission and the Corporate Affairs Commission.

Ezinwa Unuigboje highlighted that this move aligns with Fidelity Bank’s strategic objectives to bolster its capital base, increase operational efficiency, and set the stage for future growth in the financial sector.