Fidelity Bank “surpasses target”, raises over N127.1 billion in first phase of recapitalization effort

Fidelity Bank “surpasses target”, raises over N127.1 billion in first phase of recapitalization effort

Fidelity Bank has surpassed the N127.1 billion target set in its combined offer programme, as the bank concludes the programme.

The email read, “With the conclusion of the Combined Offer, I am delighted to announce that we have met and surpassed the capital-raise target we set for ourselves in the first phase of our capital-raise exercise. It is both gratifying and humbling to note this level of investor confidence in the bank.”

In an email to investors, the Managing Director of the Bank, Nneka Onyeali-Ikpe expressed appreciation, noting that the bank had surpassed the target set.

Details of the offering
Fidelity Bank became the first bank to launch a capital raising effort in line with the CBN’s recapitalization directive. The bank launched a combined offer featuring 10 billion ordinary shares available at N9.75 through a public offer and 3.2 billion ordinary shares at N9.25 through a rights issue.

The combined offer was meant to end on July 29, but the bank received approval from SEC to extend the offer and increase the number of offered shares to cater for an oversubscription.

The extended offering saw Fidelity Bank issue an additional 8.2 billion shares, with 5 billion shares sold in the public offer and 3.2 billion sold in the rights issue. Overall, Fidelity Bank issued 21.4 billion shares, including 15 billion shares through a rights issue and 6.4 billion shares through a rights issue.

Currently, there is no information on how much was raised, however, going by the email sent to investors, it is confirmed that the initial N127.1 billion target was surpassed.

With a paid-up share capital of N129.705 billion, Fidelity Bank requires an additional paid-up capital of N370.295 billion to keep its international banking license. With at least N127.1 billion confirmed raised in the first phase of the capital raising effort, the bank’s targeted capital raise has been reduced to N243.195 billion.

If the bank raises a total of N205.45 billion from a full subscription of the newly issued shares, its target will drop to N160.845 billion to meet the N500 billion minimum capital level