Fidelity Bank to issue 3.03 billion Ordinary Shares by way of Private Placement

Fidelity Bank Plc (NGX: FIDELITYBK) will be seeking Shareholders’ approval to issue 3,037,414,308 Ordinary Shares by way of Private Placement.

A special resolution for the said share will be put to Shareholders at an Extra-Ordinary General Meeting of members of Fidelity Bank Plc scheduled to hold at 10.00a.m. on Thursday, September 29, 2022 at Jupiter Hall, Four Points by Sheraton, Plot 9/10, Block 2, Oniru, Victoria Island, Lagos.

At the end of trading of Wednesday, FIDELITYBK has a market capitalization of N99.38 billion, and 28.97 billion outstanding shares, with it’s share price closing at N3.43.

A notification posted on the Nigerian Exchange by the bank stated that Shareholders will be asked to consider and if thought fit, pass the following resolutions as Special Resolutions:

That in furtherance of the provisions of Section 124 of the Companies and Allied Matters Act, 2020 and the Companies Regulations 2021, and pursuant to Paragraphs 9 and 10 of the Articles of Association of the Company, the Board of Directors of the Company be and is hereby authorised to issue, by way of Private Placement, the 3,037,414,308 unissued Ordinary Shares of 50 kobo each in the share capital of the Company (being not more than 30% of the Company’s existing issued shares and paid up capital) to potential investors.
That the Private Placement shall be carried out in conformity with applicable laws and subject to procurement of all regulatory approvals.
That the members in recognition of the need to ensure that the Company’s share capital is aligned with the requirements under applicable laws, hereby waive their pre-emptive rights in respect of the 3,037,414,308 unissued Ordinary Shares of 50 kobo each, to be issued by the
Company by way of Private Placement.
That the said shares issued in accordance with resolution (1) above shall rank pari-passu with the Company’s existing issued shares.
That the Board of Directors be and is hereby authorised to perform all such lawful acts as are necessary to give effect to the above listed resolutions including but not limited to ensuring compliance with all regulatory procedures and requirements, obtaining all required approvals
and filing within time, all regulatory returns in relation to the above resolutions.

A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion.