Fidelity Bank Offers N127.10 billion To The Public At Nigerian Exchange As Part of its Strategy To Shore Capital Base
By Emmanuel Uffot
As part of its Strategy to raise its capital base to meet the new Central Bank of Nigeria ( CBN) capital requirements, Fidelity Bank last Thursday hit the Nigerian Exchange (NGX) to open application for the listing of its N127.10 billion combined rights and public offer.
At the ” Facts Behind The Offer” at the NGX, the bank’s Group Managing Director/CEO Dr Nneka Onyeali-Ikpe emphasised why the shares of the bank are must by.
Citing it’s history of outstanding growths, business expansion, impressive returns to shareholders with annual returns of over 100 percent in the past five years and a stable business model as some of the key attractions of the bank’s shares and right issues.
She said the bank had since got approval from shareholders since August last year to raise funds before the new CBN capital requirements.
Dr Onyeali-Ikpe stressed that the bank will not only meet the N500 billion capital base for banks with international interest, but could even surpassed it.
Fidelity Bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share.
In the same vein, it is simultaneously offering 10 billion ordinary shares of 50 kobo each to the public at N9.75 per share.
The GMD/CEO said proceeds from the N127.10 billion sought through the bid would go a long way in achieving its growth plan as a platform to meet CBN new capital base requirement.
She further explained that the funds acquired from the exercise would firstly be deployed to drive business expansion and growth.
It could be recalled that the apex bank had on Thursday March 28, 2024 released a new capital base requirements for banks in Nigeria.
CBN had pegged N500 billion for commercial banks with international interest which Fidelity Bank belongs to that category.
It also fixed N200 billion for banks with national interest, N50 billion for banks with regional interest and N50 billion for merchant banks.
For non- interest banks like Jaiz Bank, those with national interest were to shore their minimum capital base to N20 billion and N10 billion for those with regional authorisation.
It is instructive to note that after CBN released the new capital base guidelines last March, Fidelity Bank is the first to launch an offer out of all the operating deposit banks.
Dr. Onyeali-Ikpe said the feat shows the bank as a pacesetter in the industry.
