Fidelity Bank Shareholders Approve Private Placement Of Unissued Ordinary Shares

Fidelity Bank Plc has gotten the approval of its shareholders to issue the unissued ordinary shares by private placement.

This was approved at Extra-Ordinary General Meeting (EGM) which was held at Four Points by Sheraton Hotel, Victoria Island, Lagos on Thursday, 29 September 2022.

In attendance were shareholders and representatives of regulators including the Central Bank of Nigeria, Nigeria Exchange Group, Securities and Exchange Commission and Corporate Affairs Commission.

Mustafa Chike-Obi, Chairman, Fidelity Bank Plc, said the EGM was called to ensure 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.

“After considering the options, the board resolved that the company’s outstanding 3,037,414,308 unissued Ordinary Shares of 50Kobo each should be disposed of by way of Private Placement to strategic investors to enable the Bank generate additional capital for continued growth in line with its objectives”, explained Chike-Obi.

“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”, said Nneka Onyeali-Ikpe, Managing Director/Chief Executive Officer.

The Bank recently paid an interim dividend of 10 Kobo per 50 Kobo ordinary share, the first interim dividend payment in its 34 year history, on the back of its remarkable H1 2022 results.