Fidelity Bank’s board of directors has proposed the company sell more shares to raise about N99 billion through Public Offer and Rights Issue.

In a corporate statement sent to the capital market authority, Nigerian Exchange Limited (NGX) and obtained on Wednesday, Fidelity Bank said the capital will be used to expand its operation within and outside Nigeria

Fidelity Bank plans to sell 10 billion shares through Public Offer and also offer 3.2 billion shares to existing shareholders of the company

The total shares are 13.2 billion and they are worth N99 billion when pegged to the current market price of the company reported on Tuesday.

In the statement, Fidelity Bank said the fundraising will be proposed to shareholders on Friday, August 11, 2023, at their Extra-Ordinary General Meeting.

Shareholders will vote on the company undertaking “a capital raising exercise via a Public Offer for up to 10,000,000,000 Ordinary Shares and Rights Issue of up to 3,200,000,000 Ordinary Shares representing 1 (one) new share for every ten (10) shares held, to new and existing shareholders respectively.”

It added that the shareholders will vote on authorising the board of directors to allot the shares issued in accordance with the resolution on the shares placed on sale, “which shall rank pari-passu with the Company’s existing issued shares, subject to the receipt of relevant regulatory approvals.”

Disclosing the reason Fidelity Bank is seeking new capital infusion, the company wrote: “The Bank is on a strong growth trajectory and requires additional capital for increased profitability, expansion (domestic and international) and enhancement of its digital capabilities

Advances in technology, the rapid evolution of the business of banking and changes in the operating landscape make it imperative that the Bank remains agile, adaptable and properly positioned to respond appropriately to developments, whilst remaining a competitive and forward looking institution.

“The proposed resolutions are aimed at ensuring that your company can take advantage of emerging business opportunities and secure long term profitability and competitive advantage, while ensuring increased shareholder value.

“It is against this background that the resolutions proposed for adoption at this Extra Ordinary General meeting are being presented for shareholders approval.”

Meanwhile, Fidelity Bank also plans to create 13.2 billion additional Ordinary Shares, to raise its issued share capital from N16 billion to N22.6 billion.

“That the issued share capital of the Company currently N16,000,000,000.00 (Sixteen Billion Naira) made up of 32,000,000,000 Ordinary Shares of N0.50 each, be increased up to N22,600,000,00.00 (Twenty-two Billion, Six Hundred Million Naira) by the creation of up to 13,200,000,000 (Thirteen Billion, and Two Hundred Million) additional Ordinary Shares of N0.50 each,” the statement explained