On Thursday, June 20, Fidelity Bank Plc, Nigeria’s sixth-largest bank, will open its public offer and rights issue, aiming to raise up to N127.1 billion. This capital raise is part of the bank’s strategy to comply with the Central Bank of Nigeria’s (CBN) revised minimum capital requirements introduced in March 2024.

The combined offer includes a rights issue of 3.2 billion ordinary shares at N9.25 per share, available to existing shareholders in a ratio of 1 new share for every 10 held as of January 5, 2024. Additionally, a public offer of 10 billion ordinary shares will be available to the general public at N9.75 per share. The acceptance and application period for both offers will run from June 20 to July 29, 2024.

Stanbic IBTC Capital leads the issuance, with several joint issuing houses, including Iron Global Markets Limited and Afrinvest Capital Limited, among others. Fidelity Bank’s Managing Director and CEO, Nneka Onyeali-Ikpe, stated that the funds would support investments in IT infrastructure, business expansion, and product distribution channels.

This move follows shareholders’ approval at the Extra-Ordinary General Meeting on August 11, 2023. The bank’s share price has seen substantial growth, closing at N10.20 per share by the end of May 2024, up from N1.68 per share in May 2019, reflecting robust investor confidence and market performance.

The bank also plans to hold a “Facts Behind the Offer” presentation at the Nigerian Exchange Limited (NGX) to provide further insights into the offering. This strategic capital raise is expected to drive sustained growth and diversify Fidelity Bank’s earnings base.

The launch underscores Fidelity Bank’s commitment to enhancing its financial stability and operational capacity, positioning it for future growth and success in the competitive banking sector.