Fidelity Bank Plc has revealed the outcome of its recent public offer to raise capital through the subscription of 10 billion ordinary shares at N9.75 per share.
The offer saw an overwhelming response, with subscriptions reaching 237.92% of the initial offering.
According to the bank’s summary, it received 108,046 applications for a total of 23,791,687,463 ordinary shares, amounting to N231.968 billion. Following the Central Bank of Nigeria’s (CBN) Capital Verification Exercise (CVE), 107,588 applications, representing 23,768,724,000 ordinary shares valued at N231.745 billion, were confirmed as valid.
No applications were rejected post-CBN verification. However, 458 applications totaling 22,765,143 shares, worth N221.960 million, were deemed invalid. Additionally, 548 applications contained odd lots amounting to 198,320 shares (valued at N1.933 million) and were also declined. Ultimately, the offer was oversubscribed by 237.92%.
To accommodate the strong demand, Fidelity Bank absorbed a significant portion of the surplus subscriptions by allocating an additional 5 billion shares. This move was in line with the resolution passed by its shareholders on July 26, 2024, which authorized an increase in share capital by up to 8.2 billion shares. Consequently, the 107,588 valid applications for 23,768,724,000 shares were successfully allocated.
The Securities and Exchange Commission (SEC) has approved the allocation process, and shares will be credited to the Central Securities Clearing System (CSCS) accounts of allottees by February 13, 2025. Those without CSCS accounts will have their shares credited using a Registrar Identification Number, in line with SEC’s dematerialization directive.
Excess funds from oversubscription will be refunded to applicants no later than February 13, 2025, following SEC clearance of the allotment.
In a related development, Fidelity Bank also announced the outcome of its Rights Issue for 3.2 billion ordinary shares at N9.25 per share, on the basis of one new share for every ten held as of January 5, 2024. The Rights Issue was also significantly oversubscribed at 137.73%, with full allotment to qualified applicants.
A total of 7,559 applications were received for 4,430,290,237 shares worth N40.980 billion. Following verification, 6,903 applications covering 4,407,252,795 shares valued at N40.767 billion were confirmed valid. An additional 52 applications for 295,990,800 shares, worth N2.737 billion, were received for rights traded on the Nigerian Exchange Limited (NGX).
A portion of the rights was renounced, with 183 shareholders giving up 97,482,219 shares valued at N901.710 million. Meanwhile, 6,668 applicants fully accepted their provisional allotments, subscribing to 1,474,892,761 shares worth N13.642 billion. Additionally, 2,959 applicants requested extra shares, with 1,363,738,114 shares worth N12.614 billion granted.
Although 656 applications for 23,037,442 shares (valued at N213.096 million) were deemed invalid, no applications were rejected after the CBN’s Capital Verification Exercise. A total of 1,266,255,895 shares, worth N11.712 billion, were fully renounced.
Ultimately, the Rights Issue was fully allocated, confirming a 137.73% subscription rate. Fidelity Bank’s successful capital-raising initiatives reflect strong investor confidence and will support the bank’s future growth and expansion strategies.
