Our Capital Raise Will Spur Growth Of Businesses Boost Economy Fidelity Bank MD Onyeali Ikpe ()

Our Capital Raise Will Spur Growth Of Businesses, Boost Economy – Fidelity Bank MD, Onyeali-Ikpe

3 weeks ago
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Managing Director and CEO of Fidelity Bank Plc, Nneka Onyeali-Ikpe, has expressed confidence that the bank will raise N500 billion to meet the Central Bank of Nigeria (CBN)’s recapitalisation policy requirement before the 2026 deadline.

Onyeali-Ikpe said the bank’s capital raise would help customers grow their businesses and generally boost the economy.

She stated this while addressing capital market stakeholders at an event titled “Facts behind the Combined Offer”, held at the Nigerian Exchange Limited Headquarters in Lagos, on Thursday, 20th June 2024.

During the presentation, the Fidelity Bank CEO said the bank has set out to raise N127 billion, which would strengthen its market position in Nigeria and boost its goal of international expansion.

She noted that because Fidelity Bank had already started the process of increasing its capital base, ahead of the CBN’s directive on banks’ recapitalisation within the next two years, it didn’t come as a surprise to them.

READ ALSO: Fidelity Bank Kicks Off N127 Billion Public Offer, Rights Issue Today

“As for us in the Fidelity, the CBN recapitalisation directive presents a significant opportunity for stronger and more resilient banking industry. We have embraced the challenge as a catalyst to propel us towards our long-term vision of becoming a market leader,” Onyeali-Ikpe stated.

Fidelity Bank on 20th June 2024 began what it called a “Combined offer” that involves a public offer of 10 billion ordinary shares at 50 kobo each, priced at N9.75 per share and a rights issue of 3.2 billion ordinary shares at 50 kobo each, priced at N9.25 per share.

The application closes Monday, 29th July 2024.

Our Capital Raise Will Spur Growth Of Businesses Boost Economy Fidelity Bank MD Onyeali Ikpe

How Proceeds of the Capital Raise will be Utilised

Onyeali-Ikpe said the bank’s capital-raising process was initiated after obtaining approval from shareholders in August 2023, emphasising that the exercise is part of the management’s strategic growth plan to raise additional capital to meet its growth needs.

“The proceeds from this pace-setting 127 billion capital raise via the right issue and public offer, will be instrumental to achieving our strategic growth plan. These funds will be deployed to drive our business and regional expansion. We will strategically expand our footprints within and outside Nigeria to serve as a broader customer base and to unlock more market opportunities.”

She added that the bank will also focus on driving technological transformation by “leveraging proprietary technology to improve operational efficiency and deliver exceptional customer service.”

“We intend to diversify and grow by investing in our IT infrastructure and production channels.

“The offer will increase our capacity to support our customers and their businesses. In summary, this capital raise will help our customers to grow, their businesses to thrive and economy to prosper,” Onyeali-Ikpe stated.

She said the bank recognises the importance of its investors and is committed to delivering value to them as well.

She noted that the bank has a track record of accelerated growth and consistent dividend payments to its shareholders.

The Fidelity Bank boss added that the offer presents an attractive opportunity for investors to join the bank in its exciting journey.

She expressed appreciation to the bank’s investors for their trust in the bank, the regulators such as the CBN and the Securities and Exchange Commission (SEC), and other professional platforms like the issuing houses, legal advisers and stockbrokers among others.

On his part, Executive Director, of Fidelity Bank, Mr. Stanley Amuchie, in a presentation, said the bank has a history of resilience in its growth trajectory over the years and today has a strong market positioning in the Nigerian banking industry.

READ ALSO: Fidelity Bank Reports Stellar H1 2023 Results, Declares Dividend

Amuchie said the bank “plans to capitalise on the vast opportunities available in Nigeria by expanding its existing domestic business,” adding that the capital raise will help the it realize its strategic plan of providing services that meet the needs of its growing clientele.

“The Bank aspires to expand its service touchpoints to select African countries, taking a cautious but value-driven approach towards foreign market entry.

Fidelity Bank is committed to its strategic plan of providing straight-through services that meet and exceed the needs of its growing clientele” he added on the rationale f behind the N127.01 billion capital raising exercise,” the executive director explained.

Amuchie noted that the acquisition of Union Bank UK Plc has strengthened the bank’s commitment on expanding its presence both inside and outside of Nigeria.

He added that sustainable growth and shareholder return can only be ensured by increased capital and year-on-year expansion in the asset base, revenue, and profit.

 

 

 

 


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