Fidelity Bank gets shareholder approval to increase share capital

Fidelity Bank Plc has passed a resolution to increase its share capital from N16 billion to N22.6 billion, paving the way for its planned public offer to begin.

Fidelity Bank PLC disclosed plans to inflate its share capital from N16 billion to N22.6 billion, according to recent resolutions from its Extra-Ordinary General Meeting which was held virtually on August 11 2023.

These are the excerpts from the EGM

Key Takeaways from the EGM

1. Boost in Share Capital: Fidelity’s share capital is poised to surge, with the creation of a whopping 13.2 billion additional ordinary shares each priced at N0.50.

2. Capital-Raising Drive: In a bid to increase its financial muscle, the bank will launch a public offer for up to 10 billion ordinary shares. Additionally, a rights issue will allow existing shareholders to snap up 3.2 billion ordinary shares. Intriguingly, for every ten shares an investor holds, they can bag one new share.

3. Board’s Empowerment: The resolutions have equipped Fidelity Bank’s Board of Directors with the green light to allocate the freshly issued shares, which will stand toe-to-toe with the bank’s existing shares, subject, of course, to obtaining the nod from regulatory bodies.

4. Compliance and Due Diligence: The board is all set to ensure all the i’s are dotted and the t’s are crossed. This encompasses adherence to regulatory protocols, timely submission of mandatory regulatory filings, and clinching all the needed approvals.

Recall Nairametrics first announced that the bank plans to raise capital via a combination of a public offer and a rights issue.

Fidelity Bank says it is to raise its share capital to N22.60 billion as the company looks to explore strategic growth.