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The board of directors of Fidelity Bank is seeking the approval of shareholders to accept excess monies rising from a possible oversubscription of its ongoing Rights Issue and Public Offer.

To this end, an Extra-Ordinary General Meeting is planned to be held on July 26, 2024.

The Tier-2 lender is currently hunting for N127 billion fresh capital via a Combined Offer which opened on June 20 and closes on July 29.

In a notice to the Nigerian Exchange Limited, the bank is proposing to increase its Issued Share Capital to accommodate a possible oversubscription of its combined offer.

“Shareholders will consider and if thought fit, pass the following as Ordinary Resolutions: (2). To consider and if thought fit, pass the following as a Special Resolution: (A) That pursuant to the Company’s Public Offer and Rights Issue (the Combined Offer) which commenced on June 20, 2024 to close on July 29, 2024, the Company be and is hereby authorized to accept surplus monies arising from potential oversubscription of the Combined Offer in such proportion as may be determined by the Board of Directors (the Board), subject to the Company’s Issued Share Capital and obtaining relevant regulatory approvals. B. That the Issued Share Capital of the Company be and is hereby increased from NGN22,600,000,000.00 divided into 45,200,000,000 Ordinary Shares of 50 Kobo each, up to NGN 26,700,000,000.00 by the creation of up to 8,200,000,000 additional Ordinary Shares of 50 Kobo each, ranking pari-passu with the existing Ordinary Shares of the Company, to accommodate potential oversubscription of the Combined Offer in the proportion of 5Billion additional Ordinary Shares under the Public Offer and 3.2Billion additional Ordinary Shares under the Rights Issue,” the notice said.

On March 28, 2024, the CBN published revised minimum capital requirements for banks, to be achieved within 24 months from April 1, 2024 to March 31, 2026.

Prior to issuance of the revised capital requirements, Fidelity Bank received shareholders’ approval at the EGM of August 11, 2023, to undertake a capital raising exercise by way of Public Offer of 10Billion Ordinary Shares of 50Kobo each at N9.75 per share to prospective shareholders and Rights Issue of 3.2Billion Ordinary Shares of 50Kobo each to existing shareholders at N9.25 per share on the basis of 1 new share for every 10 shares held at the close of business on January 5, 2024 (the Combined Offer).

The Combined Offer represents the first phase of the bank’s implementation plan for achieving the revised capital for our international banking license and we are committed to meeting the new capital requirement within the regulatory timeframe for compliance in the next phase of our implementation plan.

“The resolutions proposed for shareholders’ approval at the upcoming EGM of July 26, 2024, are to enable acceptance of potential oversubscription from the Combined Offer, subject to relevant regulatory approvals. The proposed resolutions will also enable the Company to take advantage of emerging business opportunities and secure long-term profitability and competitive advantage, while ensuring increased shareholder value.

“The offer proceeds would be applied to investments in IT infrastructure, business and regional expansion, and product distribution channels. The Company is on a strong growth trajectory and requires additional capital for improved profitability, expansion (domestic and international) and enhancement of its digital capabilities. Continuing advances in technology, the rapid evolution of the business of banking, and changes in the operating landscape also 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. Notwithstanding the continued rapid evolution of the banking industry, we have laid the foundation for strong and sustainable growth, and thank our esteemed shareholders, customers, and stakeholders for their loyalty over the years,” it said.