Fidelity Bank successfully completes private placement of 3 billion shares

Fidelity Bank successfully completes private placement of 3 billion shares

Fidelity Bank Plc, a leading financial institution in Nigeria, has announced the successful completion of a private placement of 3.03 billion units of its shares. The bank made this disclosure in a corporate notice filed on the Nigerian Exchange Limited on a recent Friday, revealing that the private placement was 100% subscribed.

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According to the notice, the bank received two applications for the 3.03 billion ordinary shares of 50 kobo each at ₦4.60 per unit. The private placement opened on February 22 and closed on February 23, with both applications found to be valid. As a result, the private placement was fully subscribed, accepted, and processed accordingly.

The approval for the private placement was secured by Fidelity Bank at its Extra-Ordinary General Meeting (EGM) held in Lagos in October 2022. The Chairman of Fidelity Bank, Mustafa Chike-Obi, had emphasized that the EGM was called to ensure compliance with Section 124 of the Companies and Allied Matters Act, 2020 (CAMA) and Regulation 13 of the Companies Regulations 2021.

These regulations require companies with unissued shares at the time of CAMA 2020 commencement to issue such shares by December 31, 2022.

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Chike-Obi further explained that the bank’s board had resolved to dispose of the outstanding 3.03 billion unissued ordinary shares of 50 kobo each through a private placement to strategic investors. This move would enable the bank to generate additional capital to support its continued growth in line with its strategic objectives.

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