Fidelity Bank, under the leadership of Managing Director and Chief Executive Officer, Dr. Nneka Onyeali-Ikpe, has successfully oversubscribed its recent capital raise of N127 billion, surpassing its initial target. The completion of the combined rights issue and public offer, which began on June 20 and concluded recently, marked a significant milestone for the bank’s growth trajectory.
In an email communication sent out by Onyeali-Ikpe post-closure of this financial endeavor, she expressed her satisfaction in revealing that the bank not only met but exceeded its set capital raise objective for this phase. This achievement highlights a remarkable level of investor confidence in Fidelity Bank, a sentiment that the CEO acknowledged with gratitude and humility.
The decision to embark on this capital raising initiative was prompted by the Central Bank of Nigeria’s directive to bolster banks in the nation through fresh capital infusion. Fidelity Bank took the lead among its counterparts in commencing this critical endeavor, setting a proactive tone for the industry.
Onyeali-Ikpe articulated the strategic deployment of the raised funds towards various growth avenues, emphasizing plans for local and international expansion, enhancement of IT infrastructure, and provision of essential capital for key sectors within the economy. This deliberate allocation of resources underscores the bank’s commitment to fostering sustained development and operational excellence.
Acknowledging the indispensable role played by regulatory bodies such as the Central Bank of Nigeria, Securities and Exchange Commission, and Nigerian Exchange, Onyeali-Ikpe lauded the seamless execution of the bank’s recapitalization plans, underscoring the collaborative efforts that ensured a successful outcome.
Fidelity Bank’s combined offer entailed the issuance of 10 billion ordinary shares of 50 kobo each through a public offer and 3.2 billion ordinary shares of the same denomination via a rights issue. The extension of the offer period by an additional 14 days, culminating on a recent Monday, facilitated broader participation from intending investors and contributed to the oversubscription of the capital raise.
Fidelity Bank is poised to leverage the raised capital effectively to propel its growth trajectory, enhancing its operational capabilities and extending its footprint in both domestic and international markets. The successful completion of this endeavor not only underscores the bank’s resilience and market confidence but also sets a positive precedent for its future strategic initiatives and value creation for stakeholders.
