Fakoyejo OlalekanThe shareholders of Fidelity Bank have approved the management’s request to raise new capital through private placement, which will bring in new investors into the company, and enable the firm have liquidity to maintain operation.
Fidelity Bank had requested that 3,037,414,308 unissued Ordinary Shares of 50 kobo each in the share capital of the company be sold to potential investors.
In a document filed with the capital market authority, Nigerian Exchange Limited (NGX Group), and the investing public, Fidelity Bank said the capital raise is subject to all regulatory approvals.
The acquisition of the 3.03 billion unissued shares by private investors is expected to rank in about N11 billion for Fidelity Bank, based on its last close market stock price of N3.68 per share.
According to Fidelity Bank in the statement, “in furtherance of the provisions of Section 124 of the Companies and Allied Matters Act, 2020 and the Companies Regulations 2021, and pursuant to Paragraphs 9 and 10 of the Articles of Association of the Company,
“the Board of Directors of the Company be and is hereby authorised to issue, by way of Private Placement, the 3,037,414,308 unissued Ordinary Shares of 50 kobo each in the share capital of the Company (being not more than 30% of the Company’s existing issued shares and paid up capital) to potential investors.”
It added, “That the Private Placement shall be carried out in conformity with applicable laws and subject to procurement of all regulatory approvals.
“That the members in recognition of the need to ensure that the Company’s share capital is aligned with the requirements under applicable laws, hereby waive their pre-emptive rights in respect of the 3,037,414,308 unissued Ordinary Shares of 50 kobo each, to be issued by the Company by way of Private Placement.”
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