Fidelity Bank to Accept Oversubscriptions, Creates Additional 8.2bn Shares
Fidelity Bank Plc has revealed its board of directors decision to accept oversubscription from its ongoing rights issue and public offers in the capital market, it said in a regulatory filing on the Nigerian Exchange.
On the local bourse, the tier-2 lender market valuation printed at N342.530 billion on Friday as its share price steadied at N10.70. The bank anticipates that the ongoing N127.10 billion combined rights issues and public offering ending this week will be oversubscribed by investors seeking to own a slice of the company.
As a result, its board of directors held an extraordinary general meeting on in pursuance of its ongoing rights issue and public offers, which started in June 20 2024 to decide whether to accept surplus money from potentially oversubscribed customers.
The bank told the Nigerian Exchange that the surplus money arising from its offers will be accepted in such proportion as may be determined by its board of directors, capped by its issue share capital and approval from the regulators.
The bank said its issue share capital has been agreed to be raised to N26.70 billion from N22.600 billion after creating an additional 8.2 billion ordinary shares to accommodate potential oversubscription of its ongoing rights issue and public offers in the market.
Fidelity Bank revealed that the board has been authorised to issue an additional 5 billion ordinary shares for the public offer and 3.2 billion shares for rights issued to existing shareholders. Fidelity Bank is required to upgrade its capital base to N500 billion to retain its international authorization.
#Fidelity Bank to Accept Oversubscriptions, Creates Additional 8.2bn Shares Naira Suffers Big, CBN Goes Ballistic Against FX Whales
