Onyeali-Ikpe: Fidelity Bank’s Capital Raising Exercise Pacesetter in Banking Industry
Kayode Tokede
The Managing Director/CEO, Fidelity Bank Plc, Nneka Onyeali-Ikpe, has described financial institution’s N127.10 billion capital raising exercise as a pacesetter in light of the banking industry’s recapitalisation drive.
Fidelity Bank on June 20, 2024 commenced its Public Offer of 10,000,000,000 ordinary shares of 50 kobo each at N9.75 per share and Rights Issue of 3,200,000,000 ordinary shares of 50 kobo each at N9.25 per share.
Speaking at the bank’s “Public Offer and Rights Issue Facts Behind the Combined Offer” at the Nigeria Exchange Limited, she stated that the Fidelity Bank is the first to launch a public offer out of the many Banks in Nigeria amid Central Bank of Nigeria (CBN) directive on banking sector capitalisation in March, 2024.
She noted that the bank’s capital raising process was proactively 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 had already started the process of raising additional capital ahead of the Central Bank’s directive requiring Banks to raise their minimum capital base to N200 billion for national banks and N500 billion for Banks with International operations amongst other capital requirements for different categories of banks did not come as a surprise to us.
“For us at Fidelity Bank, the CBN’s recapitalisation 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 our long-term vision of becoming a market leader across every product and segment we serve, not just in Nigeria but as an international bank,” she explained.
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. Secondly, she mentioned technological transformation and thirdly, diversification and growth.
Speaking , Executive Director, Fidelity Bank, Mr. Stanley Amuchie in a presentation said the commercial bank has a strong market positioning in the Nigerian banking industry, stressing that notwithstanding the significant changes in the competitive landscape of the Nigerian banking sector, it has continued to perform well.
On rationale for the offer, he expressed, “Due to the advances in technology and rapid evolution of banking business, it is imperative that Fidelity Bank is properly positioned to remain a competitive and forward-looking institution.”
According to him, Fidelity Bank is seeking to undertake landmark projects and business initiatives that would redefine its business structure, diversify earnings base and grow market share in the real sector of the economy.
“Fidelity Bank plans to capitalise on the vast opportunities available in Nigeria by expanding its existing domestic business.
“The Bank aspires to expand its service touchpoints to select African countries, taking a cautious but value driven approach towards foreign market entry.
The Acting Chief Executive Officer of NGX, Jude Chiemeka, while commending the management underscored the significance of Fidelity Bank’s proactive stance in launching the capital raise.
“Your presence here today underscores your dedication to providing relevant information to the market. We anticipate that today’s interaction will be fruitful, encouraging transparency and ultimately enhancing greater participation in your public offer,” he said.
He reiterated the NGX’S commitment to deepening the capital markets and fostering an environment conducive to sustainable growth and innovation.
“I therefore use this opportunity to invite Fidelity Bank Plc and all stakeholders to leverage the benefits of the Exchange, including improved access to capital, increased global profile and access to liquidity,” he added.
