Fidelity Bank has received approval from the Securities and Exchange Commission (SEC) to extend its Public Offer and Right Issue by 14 days. The offer, initially set to close on July 29, 2024, will now conclude on August 12, 2024. Additionally, shareholders have unanimously approved the absorption of surplus funds from potential oversubscription during the Public Offer exercise.
These resolutions were passed at an Extraordinary General Meeting (EGM) held virtually, attended by representatives from regulatory bodies, including the Central Bank of Nigeria, Nigeria Exchange Group, and SEC. Fidelity Bank’s Chairman, Mustafa Chike-Obi, explained that the bank aims to meet the new capital requirements set by the Central Bank of Nigeria within the stipulated timeframe.
The approved resolutions enable the bank to increase its share capital from 22.6 billion to 26.7 billion by creating 8.2 billion additional shares, subject to regulatory approvals. This move will accommodate potential oversubscription and allow the bank to capitalize on emerging opportunities, ensuring long-term profitability and competitive advantage while enhancing shareholder value.
Child-like noted that the bank has seen significant demand for its shares and believes this is an opportune time to raise additional capital and execute the second stage of its capital raising strategy.”
