EXCITEMENT AS FIDELITY BANK RIGHTS ISSUE, PUBLIC OFFER OPEN
Fidelity Bank Plc has commenced its rights issue and public offer today, June 20, 2024, generating significant excitement among investors on the Nigerian Exchange (NGX) Limited. This follows a record-breaking trading session on Wednesday, where the bank's shares saw their largest single-day transaction, with 1.1 billion units valued at N11.3 billion, topping the activity chart.
Key Highlights:
1. Rights Issue and Public Offer: Fidelity Bank aims to raise N127.10 billion through these initiatives to meet the Central Bank of Nigeria's (CBN) new minimum capital requirements announced on March 24. Banks with international licenses need to increase their capital base from N25 billion to N500 billion by March 31, 2026, while those with national licenses must reach N200 billion.
2. Shares Offering:
- Rights Issue: The bank is offering 3.2 billion ordinary shares of 50 Kobo each at N9.25 per unit, in a ratio of one new share for every 10 ordinary shares held as of January 5, 2024.
- Public Offer: Fidelity Bank is also selling 10 billion ordinary shares of 50 Kobo at N9.75 per unit, primarily targeting high net-worth individuals (HNIs) and institutional investors.
3. Capital Market Interest: The rights issue and public offer are part of Fidelity Bank's strategy to position itself among the tier-1 banks in Nigeria, alongside Zenith Bank, Access Bank, GTBank, UBA, and First Bank.
4. Timeline: Subscriptions for the rights issue and public offer will close on July 29, 2024.
5. Issuing Houses: The Lead Issuing House for the combined offer is Stanbic IBTC Capital, with joint issuing houses including Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited, and Planet Capital Limited.
This major financial move by Fidelity Bank is part of its broader ambition to enhance its capital base and operational capacity in the Nigerian banking sector. Investors are keen to participate in what promises to be a significant step for the bank's future growth and market position.
Fidelity Bank Plc has commenced its rights issue and public offer today, June 20, 2024, generating significant excitement among investors on the Nigerian Exchange (NGX) Limited. This follows a record-breaking trading session on Wednesday, where the bank's shares saw their largest single-day transaction, with 1.1 billion units valued at N11.3 billion, topping the activity chart.
Key Highlights:
1. Rights Issue and Public Offer: Fidelity Bank aims to raise N127.10 billion through these initiatives to meet the Central Bank of Nigeria's (CBN) new minimum capital requirements announced on March 24. Banks with international licenses need to increase their capital base from N25 billion to N500 billion by March 31, 2026, while those with national licenses must reach N200 billion.
2. Shares Offering:
- Rights Issue: The bank is offering 3.2 billion ordinary shares of 50 Kobo each at N9.25 per unit, in a ratio of one new share for every 10 ordinary shares held as of January 5, 2024.
- Public Offer: Fidelity Bank is also selling 10 billion ordinary shares of 50 Kobo at N9.75 per unit, primarily targeting high net-worth individuals (HNIs) and institutional investors.
3. Capital Market Interest: The rights issue and public offer are part of Fidelity Bank's strategy to position itself among the tier-1 banks in Nigeria, alongside Zenith Bank, Access Bank, GTBank, UBA, and First Bank.
4. Timeline: Subscriptions for the rights issue and public offer will close on July 29, 2024.
5. Issuing Houses: The Lead Issuing House for the combined offer is Stanbic IBTC Capital, with joint issuing houses including Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited, and Planet Capital Limited.
This major financial move by Fidelity Bank is part of its broader ambition to enhance its capital base and operational capacity in the Nigerian banking sector. Investors are keen to participate in what promises to be a significant step for the bank's future growth and market position.