Fidelity Bank shareholders approve excess funds absorption from public offer
Shareholders of Fidelity Bank Plc have unanimously approved the absorption of surplus funds arising from the potential oversubscription of its ongoing public offer.
A statement from the bank on Monday in Lagos, said this was one of the six resolutions its Board of Directors secured at an Extraordinary General Meeting (EGM) held virtually on Friday.
Mr Mustafa Chike-Obi, Chairman, Fidelity Bank Plc, said the bank was committed to meeting the new capital requirement stipulated by the CBN within the regulatory timelines.
Chike-Obi stated that the resolution proposed for shareholders’ approval at the EGM was to enable an increase in the share capital from 22.6 billion to 26.7 billion by creating 8.2 billion additional shares.
He explained that this was to accommodate potential oversubscription from the public offer and rights issue, subject to regulatory approvals.
“The resolution for the proposed additional capital would also allow the bank to take advantage of emerging opportunities and secure long-term profitability and competitive advantage while ensuring increased shareholders value.
“We have seen a lot of demand for our shares. We think this is the chance to take on additional capital while making it easier for us to execute stage two of our capital-raising strategy.
“So, we think this is a good thing for us to do at this time,” he said.
Responding, the Chairman Emeritus of the Independent Shareholders Association of Nigeria (ISAN), Mr Sunny Nwosu, congratulated the board of directors of the bank on the massive support it had enjoyed from the populace.
Nwosu said: “I trust that we will not disappoint them as we welcome new shareholders into our fold.
“Fidelity Bank is a choice bank for everybody and as we go out, we are still converting more people to shareholders.”
On his part, National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), Mr Boniface Okezie, commended the board and management of the bank for taking a bold initiative.
Okezie said: “This means that not only would the public offer be oversubscribed, but we would also have cause to retain the excess funds.
“I encourage all shareholders to key into the offer as it would ultimately lead to increased returns for us.”
Similarly, the President, Pragmatic Shareholders Association, Mrs Bisi Bakare, appreciated the entire board, management and staff of the bank for the proactive step taken for its capital raising drive.
Fidelity Bank combined offer exercise was opened on June 20.
Adding that it would be offering for subscription 10 billion ordinary shares of 50k each at N9.75 per share through a public offer.
Also 3.2 billion ordinary shares of 50k each at N9.25 per share to existing shareholders of the Bank through a Rights Issue.
Fidelity Bank is a full-fledged commercial bank with over 8.3 million customer service across its 251 business offices in Nigeria and the United Kingdom.
