Fidelity Bank to Raise Capital via Private Placement
Fidelity Bank Plc (Ticker: FIDELITYBNK) has signalled interest in issuing private placement as part of an effort to strengthen the tier-2 capital lender’s position in the market, according to a recent regulatory filing.
In an extraordinary general meeting (EGM) notice submitted to the regulator, the management said that the private placement will be carried out in conformity with applicable laws and subject to the procurement of all regulatory approvals.
The bank told regulators and shareholders about ITS plan to issue 3,037,414,308 unissued ordinary shares of 50 kobo each in the share capital to potential investors. The sum planned for private placement is not expected to be more than 30% of the Company’s existing issued shares and paid-up capital.
The bank’s decision for capital raise follows its recently announced accusation of Union Bank UK as management sustains Tier-1 capital agenda. Over the years, Fidelity bank has been trying to position itself as a tier-1 capital lender, albeit, unsuccessful.
# Fidelity Bank to Raise Capital via Private Placement
Nigerian banks’ market valuations have dropped significantly, and it appears few of the players have been spared in selloffs in the local bourse. Few gains were driven by small-cap banks in the tier-2 category.
Fidelity Bank Plc has seen buckets of buy ratings after its relatively healthy earnings performance in the first half of the financial year 2022. The bank is in the process of raising capital after management announced the acquisition of100% equity stake in Union Bank UK.
The Dangote Group has been described as a significant premium player as over 300 corporate exhibitors are participating in the 17th Abuja International Trade Fair (AITF) that is expected to be declared open by President Muhammadu Buhari on Friday.
Africa's largest business conglomerate, Dangote Industries Limited has been adjudged the Outstanding Indigenous Conglomerate of the Decade, carting home eight different Economic Community of West African States Manufacturing Excellence Awards (EMEA) in the process.
Shareholders of Nigerian Exchange Group Plc (NGX Group) on Friday approved resolutions by the company’s Board of Directors to re-elect Mr Apollos Ikpobe and Dr Okechukwu Itanyi as non-executive directors.