Fidelity Bank Plc is seeking to enhance its equity capital through private investors as part of its recapitalisation strategy leading into 2026.
The bank plans to place 20 billion shares with private investors at an undisclosed price, pending shareholder approval in February.
This private placement exceeds the recent public offer and rights issue, which included a public offer of 10 billion ordinary shares at ₦9.75 each and a rights issue of 3.2 billion shares at ₦9.25, conducted earlier in 2024.
The private placement is intended to facilitate a quicker capital raise by targeting a select group of investors instead of the broader market.
On March 28, 2024, the Central Bank of Nigeria (CBN) announced revised minimum capital requirements for banks, with a compliance deadline of March 31, 2026.
Fidelity Bank’s insiders also invest in the bank to underscore their confidence in its fundamentals. In late November, CEO Nneka Onyeali-Ikpe purchased 15 million shares at an average price of ₦15.96.
Other executives, including Abolore Solebo and Stanley Amuchie, have also made significant share purchases. Between December 17 and 23, Solebo acquired 9.927 million shares, while Amuchie bought 25 million on December 6. These purchases reflect an optimistic view of the bank’s future growth and stability.
Extra-Info on Fidelity Bank
Fidelity Bank, headquartered in Lagos, Nigeria, is a commercial bank licensed by the CBN. It has grown from a marginal player in 1987 to a banking institution, with assets estimated at over $4.2 billion and shareholders’ equity of over $610 million. 2005, Fidelity acquired FSB International Bank Plc and Manny Bank Plc, creating one of the top 10 Nigerian banks.
In 2011, the bank was ranked the 7th most capitalized in Nigeria and the 25th most capitalized in Africa. Fidelity Bank has an extensive network of interconnected branches in all Nigerian states and major cities, with a tier-one capital of nearly $1 billion.
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