Fidelity Bank Plc has concluded the first phase of its equity capital raise through a Public Offer and Rights Issue, achieving a 238 per cent oversubscription on its Public Offer.
This follows the completion of the Central Bank of Nigeria’s (CBN) capital verification exercise and the Securities and Exchange Commission’s (SEC) approval of the Basis of Allotment.
The Public Offer attracted 108,046 applications for 23.79 billion shares worth ₦231.97bn. Following the verification process, 107,588 applications for 23.77 billion shares valued at ₦231.75bn were deemed valid, while 458 applications amounting to 22.77 million shares and 548 odd-lot applications totaling 198,320 shares were rejected. The Public Offer was 237.92 per cent subscribed, with a 150 per cent allotment.
Similarly, the Rights Issue recorded 7,559 applications for 4.43 billion shares worth ₦40.98bn. Of these, 656 applications for 23.04 million shares were deemed invalid. The Rights Issue was 137.73 per cent subscribed and fully allotted.
Commenting on the milestone, Dr. Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer of Fidelity Bank Plc, expressed gratitude for the overwhelming investor confidence in the bank’s growth strategy.
“The positive result recorded in our Combined Offer is a testament to the strength of the Fidelity Bank franchise in the capital market. We extend our sincere gratitude to investors for their continued confidence in the Bank, as evidenced by the 237.92 per cent and 137.73 per cent oversubscription of our Public Offer and Rights Issue, respectively.
“As we proceed to the next phase of our capital raising drive, we reaffirm our commitment to delivering innovative financial solutions and sustainable returns to our stakeholders.”
The proceeds from this capital raise will be deployed toward domestic and international business expansion, technology infrastructure upgrades, and enhanced customer service initiatives.
Following the successful completion of this first phase, Fidelity Bank’s Board of Directors has secured shareholder approval to commence the second phase of its capital raise. The bank remains confident in meeting the new regulatory capital requirement for banks with international authorization ahead of the CBN’s March 31, 2026, deadline.
As the first financial institution to undertake a public offer under the new CBN capital framework, Fidelity Bank’s shares have demonstrated exceptional market performance.
From an initial offer price of ₦9.75 per share for the Public Offer and ₦9.25 per share for the Rights Issue in June 2024, the bank’s shares surged to ₦21.15 on February 7, 2025—a remarkable 116 per cent growth, the highest in the banking sector.
Fidelity Bank Completes First Phase Of Capital Raising With 238% Oversubscription is first published on The Whistler Newspaper
Source: The Whistler
