Fidelity Bank has announced plans to increase its issued share capital from N22.6bn to N26.7bn by creating up to 8.2bn additional ordinary shares, each valued at 50 Kobo. This decision aligns with the new minimum capital requirements set by the Central Bank of Nigeria (CBN).
The announcement was made in a corporate notice filed with the Nigeria Exchange Limited and signed by the Company Secretary, Ezinwa Unuigboje, on Thursday. The bank aims to accommodate potential oversubscription from its ongoing public offer and rights issue, issuing 5bn new shares under the public offer and 3.2bn new shares under the rights issue.
The combined offer, which began on June 20, will close on July 29. The new shares will rank equally with existing shares, ensuring no dilution in value for current shareholders. An Extraordinary General Meeting has been scheduled for July 26, where shareholders will vote on the proposed increase in share capital.
According to the notice, the bank is authorized to accept surplus monies arising from potential oversubscription of the combined offer, subject to the company’s issued share capital and relevant regulatory approvals. This move will increase the bank’s issued share capital from N22.6bn, divided into 45.2bn ordinary shares of 50 Kobo each, to N26.7bn, creating up to 8.2bn additional ordinary shares.
The virtual meeting will enable members to discuss and approve the capital raise, ensuring the bank meets the revised CBN requirements within the stipulated timeframe from April 1 to March 31, 2026. Unuigboje added that the bank requires additional capital to invest in information technology infrastructure, expand its business operations domestically and internationally, and enhance its product distribution channels. These investments are intended to secure long-term profitability, competitive advantage, and increased shareholder value, positioning the bank for sustainable growth.
The bank’s board of directors has been authorized to obtain approvals from regulatory bodies such as the Securities and Exchange Commission, the Central Bank of Nigeria, and the Corporate Affairs Commission.
“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,” the notice stated. “Continuing advances in technology, the rapid evolution of the banking business, and changes in the operating landscape make it imperative that the bank remains agile, adaptable, and properly positioned to respond appropriately to developments, while remaining a competitive and forward-looking institution.”
PUNCH reported that Fidelity Bank Plc opened its N127.10bn rights issue and public offer, becoming the first bank to go public following the CBN’s recapitalization directive issued in March. Fidelity Bank commenced its public offer of 10 billion ordinary shares of 50 Kobo each at N9.75 per share and rights issue of 3.2 billion ordinary shares of 50 Kobo each at N9.25 per share.
