As the bank wraps up its combined offer campaign, Fidelity Bank has reached the N127.1 billion objective.
The bank’s managing director, Nneka Onyeali-Ikpe, thanked investors in an email and said that the firm had exceeded the goal.
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.”
As per the CBN’s recapitalization order, Fidelity Bank was the first bank to initiate a capital raising campaign. The bank issued a combined offer that included 3.2 billion ordinary shares through a rights issue at N9.25 and 10 billion ordinary shares offered at N9.75 through a public offer.
The joint offer was scheduled to expire on July 29, but the bank was given permission by the SEC to prolong it and raise the quantity of shares offered in order to accommodate an oversubscription.
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Fidelity Bank issued 8.2 billion more shares as part of the extended offering; 5 billion of those shares were sold during the public offering, while the remaining 3.2 billion were sold during the rights issue. In sum, 21.4 billion shares were issued by Fidelity Bank, including 6.4 billion shares via a rights issue and 15 billion shares through a rights issue.
The amount raised is unknown at this time, however based on the email provided to investors, it is verified that the initial N127.1 billion goal was exceeded.
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.
