If the rights issue is authorized, the lender will raise almost N32 billion from current shareholders.
The financial institution applied for clearance through its stockbrokers, APT Securities & Funds Limited, according to the NGX's weekly report.
It was revealed that the Rights Issue will be “On the basis of one new ordinary share for every 10 existing ordinary shares held as at the close of business on Friday, 5 January 2024. The qualification date for the Rights Issue is 5 January 2024.”
3,037,414,308 ordinary shares of the bank, each worth 50 Kobo, were launched on the NGX on August 11, 2023, at a price of N4.60 per share through a private placement. The estimated value of the shares was N13.972bn.
Fidelity Bank announced last year that it would issue 13,200 billion common shares as part of a rights issue in addition to conducting a public offering to acquire additional capital.
The statement said, “The issued share capital of the company currently N16bn made up of 32 billion ordinary shares of N0.50 each, be increased up to N22.6bn by the creation of up to 13,200 billion additional ordinary shares of N0.50 each.”
The Central Bank of Nigeria governor, Dr. Olayemi Cardoso, announced the planned recapitalization exercise of banks during the Annual Bankers' Dinner in Lagos, Nigeria, prior to the bank's decision to boost its capital base.
There have been a number of transactions in banking stocks on the local exchange since the announcement.
Friday's trading for Fidelity Bank ended at N14.2 per unit on the NGX, up 6.36 percent from the previous day's closing price. Additionally, it was the equity's highest price in the previous seven days.
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