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Fidelity Bank Ignites Stock Market With Combined Offer To Raise N 127.2 billion Naira

By update Jun 24, 2024 #Cover
Fidelity Bank combined offerFidelity Bank combined offer

Fidelity Bank combined offer
Fidelity Bank combined offer

Fidelity Bank’ PLC, one of Nigeria’s leading financial institutions on Thursday, June 20, 2024 ignited the Stock Market with a combined rights issue and public offer for subscription in excess of N127.2 billion.

Flagging off the offer at the ‘Facts Behind the ‘Combined Offer’ presentation on the Nigerian Exchange, NGX, Limited, Managing Director and Chief Exercise Officer of Fidelity Bank’ PLC, Dr.. Nneka Onyali-Ikpe said the bank embarked on the offer as part of efforts to meet and surpass the recapitalization requirement stipulated by the Central Bank of Nigeria (CBN) and to enable the bank achieve it’s strategic objectives, including investment in IT infrastructure, expansion and development of product distribution channels.

She gave a breakdown of the deployment of the proceed in IT infrastructure for upgrade and investment in enhanced cyber security solutions, data analytics and cloud solutions.
Similarly, the bank will undertake regional and business expansion in franchise across the retail, small and medium enterprises, commercial and corporate segments as well as banking license opportunities in select African countries.
These are in addition to investment in product distribution channels such as POS machines, ATMs, branch enhancement and construction and increased agency banking amongst others.

According to the Fidelity Bank CEO, ” We have a clear pathway to achieving the N500 billion new minimum capital base, which will clearly confirm beyond any doubt that Fidelity Bank is one of the biggest banks in Nigeria.”

The bank is offering simultaneously, 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share and a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share.

Dr. Onyeali-Ikpe while highlighting some of the milestone achievements that have distinguished the bank in the previous years to include its expansion drive and a stable and resilient business model, also underscored the history of the bank’s outstanding growth and impressive annual Return On Investment, ROI, averaging over 100 per cent in the past five years.

Earlier in his remark, Chairman of Fidelity, Mustafa Chike-Obi, represented by a non-executive director, Isa Inuwa, stated that the bank is aiming to surpass the N500 billion minimum capital requirement set by the apex bank.

Chike-Obi highlighted the Bank’s strong and sustainable fundamental as convincing appeal to discerning investors to invest and/or acquire more stakes in the bank.

Speaking in the same vein, the Executive Director, in the bank, Stanley Amuchie in his presentation revealed that Fidelity Bank’s strong market positioning in the Nigerian banking space has helped it to excel despite the economic headwinds and the highly competitive landscape.

Meanwhile, Chairman, Nigerian Exchange (NGX), Ahonsi Unuigbe, noted that the combined offer, which is a testament to Fidelity Bank’s unwavering commitment to strengthening its own capital base, is a landmark for the bank and the financial services sector in Nigeria . strengthening its own capital base, is a landmark for the bank and the financial services sector in Nigeria .

By update

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