THE Chief Executive of Fidelity Bank Plc, Nneka OnyealiIkpe has announced that the N127.10 billion capital raise is to enhance its market position and expand internationally. The initiative includes a public offer of N10 billion shares and a rights issue of 3.2 billion shares, following the CBN’s 2024 recapitalization directive. The funds are expected to drive expansion, technological transformation and business diversification to support growth and deliver value to shareholders and customers.
The Managing Director and CEO, Onyeali-Ikpe speaking at the N127.10 billion Public Offer and Rights Issue Facts Behind the Combined Offer at the Nigerian Exchange Limited headquarters in Lagos, said that Fidelity Bank is “the first Nigerian bank to launch a public offer following the Central Bank of Nigeria’s (CBN) directive on banking sector capitalization issued in March 2024.
Fidelity Bank has commenced its public offer of N10 billion ordinary shares at 50 kobo each, priced at N9.75 per share, alongside a rights issue of 3.2 billion ordinary shares at 50 kobo each, priced at N9.25 per share. Onyeali-Ikpe said that the financial institution’s N127.10 billion public offer is to be considered a pacesetter in the banking industry’s capitalisation drive.
She noted that the bank’s capital raising process was practically initiated after obtaining approval from shareholders in August 2023, stressing that the exercise is part of the management’s strategic growth plan to raise additional capital to meet its growth needs. “Given that Fidelity Bank has already started the process of raising additional capital ahead of CBN’s directive, requiring the banks to raise a minimum capital base of N200 billion for national banks and N500 billion for banks with international operations like ours, amongst other capital requirements.
“This didn’t come as a surprise to us. As for us at Fidelity Bank, the CBN recapitalization directive presents a significant opportunity for a stronger and more resilient banking industry. “We have embraced the challenge as a catalyst to propel us, towards a long-term vision of becoming a market leader across every product that we offer and segment that we sell, not just in Nigeria, but as an international bank,” she said.
On utilisation of the proceeds, On- yeali-Ikpe noted that proceeds from the N127.10 billion capital-raising exercise would be instrumental in achieving its strategic growth plan. She highlighted that the funds, firstly, would be deployed to drive, business and regional expansion. “We will strategically expand our footprints within and outside Nige[1]ria to serve a broader customer base and to unlock new market opportunities. Secondly, we will have what we call technological transformation.
We are committed to leveraging proprietary technology to improve operational efficiency and deliver exceptional customer service. Thirdly, we intend to diversify and grow. By investing in IT infrastructure and product distribution channels, we will aim to diversify our earnings base through digitalization and business expansion,” she said. She noted that the offer will increase the bank’s capacity to support its customers and their businesses. In summary, this capital raise will help our customers to grow, their businesses to thrive, and their economy to prosper,” she said.
