Fidelity Bank Announces Capital Adjustment and Share Sale Plans
Daily Global News gathered that In a bid to strengthen its financial position and support its growth trajectory, Fidelity Bank has unveiled plans to adjust its capital structure and conduct a public offer for additional shares. The tier-2 lender has called for an urgent general meeting with its shareholders to seek approval for these strategic moves.
The proposed adjustments will see Fidelity Bank raise its issued share capital from the current level to N22.6 billion. Currently, the bank’s issued share capital stands at billion, comprising 32,000,000,000 Ordinary Shares of N0.50 each. The plan is to increase this capital by creating up to 13,200,000,000 additional Ordinary Shares of N0.50 each.
Pending the shareholders’ approval, Fidelity Bank intends to conduct a capital raising exercise through a public offer. The bank aims to issue up to 10,000,000,000 ordinary shares and also offer a rights issue of up to 3,200,000,000 ordinary shares. The rights issue will represent one new share for every ten shares held, with the offer extended to both new and existing shareholders.
According to the bank, the additional capital is crucial to support several key objectives. These include driving increased profitability, expanding its operations both domestically and internationally, and enhancing its digital capabilities. Fidelity Bank recognizes the importance of staying agile and adaptable in the face of rapidly evolving technology and changes in the banking landscape. By maintaining competitiveness and forward-looking strategies, the bank aims to capitalize on emerging business opportunities while delivering sustainable value to its shareholders.
The proposed resolutions will be presented at an Extraordinary General Meeting. Fidelity Bank’s management believes that with the approval of these measures, the bank will be well-positioned to navigate the dynamic market environment, secure long-term profitability, and maintain a competitive edge.
The management urges shareholders to consider and support the proposed resolutions, recognizing the strategic significance of these moves in enabling Fidelity Bank’s continued growth and success in the ever-changing banking industry.
