Fidelity Bank Plc is gearing up for what promises to be a significantly oversubscribed capital raise, as enthusiasm mounts among investors for its ongoing N127.1 billion combined rights and public offer. With early indicators showing robust demand from existing shareholders and the general investing public, market analysts predict the bank may exceed its initial offering size.

The bank’s initiative includes a rights issue of 3.2 billion ordinary shares at N9.25 per share, alongside a public offer of 10 billion ordinary shares priced at N9.75 each. Both offerings, which opened on June 20, 2024, are set to close on July 29, 2024, and have already garnered substantial interest.

In response to the expected high subscription levels, Fidelity Bank has called for an Extraordinary General Meeting (EGM) on July 26, 2024, to seek shareholder approval to absorb potential oversubscriptions. The proposed resolutions aim to authorize the acceptance of surplus funds and increase the bank’s issued share capital to accommodate additional shares.

“The overwhelming support from shareholders and investors underscores their confidence in Fidelity Bank’s growth trajectory and financial stewardship,” remarked Alhaji Rasheed Yussuff, the Doyen of Stockbrokers. He cited the bank’s strong corporate governance, impressive profitability history, and consistent dividend payouts as key factors driving investor confidence.

Fidelity Bank’s strategic utilization of the proceeds includes investments in technology infrastructure, business expansion, and enhancing digital capabilities. The bank aims to bolster its position in the competitive banking landscape while delivering sustainable value to shareholders.

The successful execution of its capital raise not only positions Fidelity Bank for enhanced profitability but also strengthens its foundation for long-term growth and market leadership in Nigeria’s financial sector.