N32bn To Be Raised By Fidelity Bank Via Rights Issue - Global Report

Breaking

FirstmobileApp

FirstmobileApp
moniemobileApp

Uba banner

Uba banner
Uba

Lemon Friday Promo

Lemon Friday Promo
Lemon Friday

virtual account banner ad

Skillnovation

Skillnovation
WEMA/FG

Tuesday, January 9, 2024

N32bn To Be Raised By Fidelity Bank Via Rights Issue



Fidelity Bank

Vibrant financial institution, Fidelity Bank Plc has applied for approval and listing of the Rights Issue of 3.2 billion ordinary shares of 50 kobo each at N10 per share on the Nigerian Exchange Limited.

The Rights Issue if approved will see the lender raise about N32bn from existing shareholders.

In its weekly report, the NGX said that the financial institution sought approval through its Stockbrokers, APT Securities & Funds Limited.

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.”

On August 11, 2023, the NGX had listed 3,037,414,308 ordinary shares of 50 Kobo each of the bank at N4.60 per share offered through a Private Placement. The shares were valued at about N13.972bn.

Last year, Fidelity Bank had said that it would raise fresh capital through a combination of public offer and Rights Issue involving the issuance of 13,200 billion ordinary shares.

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 decision of the bank to increase its capital base preceded the announcement of the planned recapitalisation exercise of banks by the Central Bank of Nigeria governor, Dr Olayemi Cardoso, at the Annual Bankers’ Dinner in Lagos.

Since the announcement, there have been lots of activities in banking stocks on the local bourse.

Fidelity Bank closed trading on Friday on the NGX priced at N14.2 per unit, a 6.36 per cent appreciation over its previous day’s price. It was also the highest price for the equity in the last seven days.

Credit: punchng.com

No comments:

Post a Comment