Fidelity Bank Plans to Adjust Capital, Sells More Shares
Fidelity Bank has signaled a plan to raise its issue share capital to N22.6 billion as the tier-2 lender calls for an urgent general meeting with shareholders to obtain approval. The Tier-2 capital lender is also seeking to boost its capital with a public offer.
In a regulatory filing, the bank said it will seek shareholders’ approval to adjust the issued share capital of the company currently billion made up of 32,000,000,000 Ordinary Shares of N0.50 each, be increased up to N22.6 billion by the creation of up to 13,200,000,000 additional Ordinary Shares of N0.50 each.
If approval is obtained, Fidelity Bank said it will undertake 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 one new share for every ten shares held, to new and existing shareholders respectively.
The bank said it is on a strong growth trajectory and requires additional capital for increased profitability, expansion (domestic and international), and enhancement of its digital capabilities.
It noted that advances in technology, the rapid evolution of the business of banking, and changes in the operating landscape make it imperative that the Bank remains agile, adaptable, and properly positioned to respond appropriately to developments, whilst remaining a competitive and forward looking institution.
It told shareholders in the notice that the proposed resolutions are aimed at ensuring that Fidelity Bank can take advantage of emerging business opportunities and secure long-term profitability and competitive advantage while ensuring increased shareholder value.
“It is against this background that the resolutions proposed for adoption at this Extra Ordinary General meeting are being presented for shareholders’ approval”, the notice said. #Fidelity Bank Plans to Adjust Capital, Sells More Shares Nigerian Treasury Bills Yield Rises to 7%