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The Securities and Exchange Commission (SEC) has approved a 14-day extension for Fidelity Bank’s Public Offer and Rights Issue. Originally set to close on Monday, July 29, 2024, the offer will now conclude on Monday, August 12, 2024.
During an Extraordinary General Meeting (EGM) held virtually yesterday, Fidelity Bank’s shareholders also unanimously agreed to absorb any surplus funds resulting from the potential oversubscription of the Public Offer. The meeting, attended by representatives from various regulatory bodies including the Central Bank of Nigeria, Nigeria Exchange Group, and SEC, resulted in several key resolutions.
Mr. Mustafa Chike-Obi, Chairman of Fidelity Bank Plc, emphasized the bank’s commitment to fulfilling the new capital requirements established by the Central Bank of Nigeria. He highlighted that the resolutions are aimed at increasing the bank’s share capital from ₦22.6 billion to ₦26.7 billion by issuing an additional 8.2 billion shares. This increase is intended to accommodate potential oversubscription and is subject to regulatory approvals.
Chike-Obi explained, “The proposed increase in capital is designed to position the bank to capitalize on emerging opportunities, ensure long-term profitability, and enhance shareholder value. We have observed significant interest in our shares and believe this is an opportune moment to raise additional capital. This will facilitate the execution of the second phase of our capital-raising strategy and support our growth objectives.”
The extension and capital increase are strategic steps towards strengthening Fidelity Bank’s financial foundation and supporting its future growth and competitive positioning in the market.
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