Fidelity Bank has informed its shareholders that it’s set to raise more capital, up to N90 billion, to play bigger in local and international markets.
The creditor’s decision to raise more funds will see new investors acquire stakes in Fidelity Bank through Public Offer, a statement obtained on Wednesday showed.
Also, it was disclosed that existing shareholders will be able to increase their current investments in Fidelity Bank through the Rights Issue.
About 10 billion shares have been allocated for the Public Offer and 3.2 billion shares have been earmarked for the Rights Issue, bringing the total shares to 13.2 billion, worth around N99 billion based on the closing share price on Tuesday.
Although, the Public Offer and Rights Issue don’t often carry the exact share price. The shares could be sold at a discounted price because they are bought directly from the company and not the secondary market.
The board of directors at Fidelity Bank said during the company’s Extra-Ordinary General Meeting, on Friday, August 11, 2023, if thought fit, shareholders will pass the following as Ordinary Resolutions:
- That the issued share capital of the Company currently N16,000,000,000.00 (Sixteen Billion Naira) made up of 32,000,000,000 Ordinary Shares of N0.50 each, be increased up to N22,600,000,00.00 (Twenty-two Billion, Six Hundred Million Naira) by the creation of up to 13,200,000,000 (Thirteen Billion, and Two Hundred Million) additional Ordinary Shares of N0.50 each.
- That the Company undertakes a capital raising exercise via a Public Offer for up to 10,000,000,000 Ordinary Shares and Rights Issue of up to 3,200,000,000 Ordinary Shares representing 1 (one) new share for every ten (10) shares held, to new and existing shareholders respectively.
- That the Board of Directors of the Company be and is hereby authorised to allot the shares issued in accordance with resolution (2) above, which shall rank pari-passu with the Company’s existing issued shares, subject to the receipt of relevant regulatory approvals.
- That the Board of Directors be and is hereby authorised to perform all such lawful acts that are necessary to give effect to the above listed resolutions including but not limited to ensuring compliance with all regulatory procedures and requirements, obtaining all required approvals and filing within time, all regulatory returns in relation to the above resolutions.