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HomeBusinessStrategic investors acquire N13.97 bln shares of Fidelity Bank through private placement 

Strategic investors acquire N13.97 bln shares of Fidelity Bank through private placement 

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By Samuel Bankole

Fidelity Bank Plc announced on Friday that it has sold a total of over three billion dollars worth of its shares, worth N13.97 billion, through private placement to two investors.

In a regulatory filing with the Nigerian Exchange Limited (NGX), the lender said the result of the private placement, which took place between February 22 and February 23, showed that the 3,037,414,308 shares of 50 Kobo offered at N4.60 per share were fully subscribed.

The bank said the Securities and Exchange Commission (SEC) has cleared the basis of the allotment of the shares.

“Two (2) applications were received for a total of 3,037,414,308 ordinary shares in connection with the private placement.

“The two (2) applications for a total of 3,037,414,308 ordinary shares were found to be valid, accepted, and processed accordingly.

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“The private placement was therefore 100 percent subscribed. All applications were received within the offer period of Wednesday, February 22, 2023, and Thursday, February 23, 2023,” the bank said in the regulatory communication.

The lender stated that the CSCS accounts of successful allottees have been credited with shares allotted by the registrars to Fidelity Bank Plc, First Registrars, and Investor Services Limited.

The private placement was initiated by the bank in compliance with Section 124 of the Companies and Allied Matters Act, 2020 (CAMA) and Regulation 13 of the Companies Regulations, 2021, which require companies with unissued shares at the time of commencement of CAMA 2020 to issue such shares by December 31, 2022.

The lender sorted and obtained the approval of its shareholders at the Extra-Ordinary General Meeting (EGM) held in Lagos in October last year.

Chairman of the Board Mustafa Chike-Obi said at the end of the EGM that, after considering the options available to the bank and its shareholders, the Board resolved that the company’s outstanding 3,037,414,308 unissued ordinary shares of 50 Kobo each should be disposed of by way of the private placement to strategic investors to enable the bank to generate additional capital for continued growth in line with its objectives.

“Fidelity Bank is growing in leaps and bounds, and we need to expand our capital base to take advantage of emerging opportunities. We will also use the additional capital to enhance our technology infrastructure to enable us to serve more customers”, explained Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer of the Bank.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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