By Milcah Tanimu

Fidelity Bank has announced plans to raise N127.1 billion in compliance with the Central Bank of Nigeria’s (CBN) revised minimum capital requirements for Nigerian commercial banks, introduced on March 28, 2024. The combined offer aims to increase the bank’s share capital base, supporting its growth and diversification efforts.

The signing ceremony for the combined offer took place on June 5, 2024, at Fidelity Bank’s headquarters in Lagos. Shareholders had previously approved the Rights Issue and Public Offer during an Extra-Ordinary General Meeting held on August 11, 2023.

Under the Rights Issue, 3.2 billion ordinary shares of 50 kobo each will be offered at ₦9.25 per share, in the ratio of 1 new ordinary share for every 10 ordinary shares held as of January 5, 2024. The Public Offer will see ten billion ordinary shares of 50 kobo each offered to the general public at ₦9.75 per share.

Stanbic IBTC Capital is the Lead Issuing House for the Combined Offer. The Joint Issuing Houses include 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 will open on June 20, 2024, and close on July 29, 2024.

At the signing ceremony, Fidelity Bank’s Managing Director and CEO, Dr. Nneka Onyeali-Ikpe, stated that the proceeds from the Combined Offer will be invested in IT infrastructure, business and regional expansion, and product distribution channels.

Stanbic IBTC Capital’s CEO, Oladele Sotubo, praised Fidelity Bank’s management team for their commitment to executing the Combined Offer, highlighting the bank’s proactive approach in meeting the CBN’s revised capital requirements. He also expressed confidence that this transaction would inspire other corporations to leverage equity capital markets for their strategic funding needs.

Additionally, Fidelity Bank recently signed a $40 million deal with AFREXIM Bank and JohnVents for cocoa export, further showcasing the bank’s efforts to diversify and expand its business operations.