June 23, (THEWILL) – The Managing Director and CEO of Fidelity Bank Plc, Nneka Onyeali-Ikpe, has said that the bank’s N127.10 billion capital raising initiative is set to enhance its market position and expand its international footprint.
Onyeali-Ikpe stated this at the “N127.10 billion Public Offer and Rights Issue Facts Behind the Combined Offer” event at the Nigerian Exchange Limited Headquarters in Lagos.
She noted that Fidelity Bank is the first Nigerian bank to launch a public offer following the Central Bank of Nigeria’s (CBN) directive on banking sector capitalization issued in March 2024.
On June 20, 2024, Fidelity Bank commenced its public offer of 10 billion ordinary shares at 50 kobo each, priced at N9.75 per share, alongside a rights issue of 3.2 billion ordinary shares at 50 kobo each, priced at N9.25 per share.
Onyeali-Ikpe said that the financial institution’s N127.10 billion capital raising exercise is to be considered as a pacesetter in the life of the banking industry capitalisation drive.
She noted that the bank’s capital-raising process was practically initiated after obtaining approval from shareholders in August 2023, stressing that the exercise is part of the management’s strategic growth plan to raise additional capital to meet its growth needs.
“Given that Fidelity Bank has already started the process of raising additional capital ahead of CBN’s directive, requiring the banks to raise a minimum capital base of N200 billion for national banks and N500 billion for banks with international operations like ours, amongst other capital requirements.
“This didn’t come as a surprise to us. As for us at Fidelity Bank, the CBN recapitalization directive presents a significant opportunity for a stronger and more resilient banking industry.
“We have embraced the challenge as a catalyst to propel us, towards a long-term vision of becoming a market leader across every product that we offer and segment that we sell, not just in Nigeria, but as an international bank,” she said.
Onyeali-Ikpe noted that proceeds from the N127.10 billion capital-raising exercise would be instrumental in achieving its strategic growth plan.
She highlighted that the funds, firstly, would be deployed to drive, business and regional expansion.
“We will strategically expand our footprints within and outside Nigeria to serve a broader customer base and to unlock new market opportunities.
“Secondly, we will have what we call technological transformation. We are committed to leveraging proprietary technology to improve operational efficiency and deliver exceptional customer service.
“Thirdly, we intend to diversify and grow. By investing in IT infrastructure and product distribution channels, we will aim to diversify our earnings base through digitalization and business expansion,” she said.
She noted that the offer will increase the bank’s capacity to support its customers and their businesses. I
“In summary, this capital raise will help our customers to grow, their businesses to thrive, and their economy to prosper,” she said.
Onyeali-Ikpe said that the management recognized the importance of investors and is committed to delivering value to them as well.
“Our track record of accelerated growth and consistent dividend payment is a testament to this,” she explained.
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