Fidelity Bank To Seek Approval From Shareholders on Its Plan to Increase Capital on Stock Exchange

Fidelity Bank Plc made an announcement in a July 19 notice about its Extra-Ordinary General Meeting (EGM) which is scheduled to hold on Friday, August 11, 2023.

In the statement, the bank gave a record of its issued equity; currently, N16 billion made up of 32 billion ordinary shares of 50 kobo each, will be increased up to N22.6 billion by the creation of up to 13.2 billion additional ordinary shares of 50 kobo each.

The bank also said it’ll be seeking the approval of members for a raise in capital through a public offering of close to 10 billion ordinary shares and a rights issue of up to 3.2 billion ordinary shares to new and existing shareholders, representing one new share for every ten shares held.

This Is What Fidelity Bank Said: “The bank is on a strong growth trajectory and requires additional capital for increased profitability, expansion (domestic and international), and enhancement of its digital capabilities.

“Advances in technology, the rapid evolution of the business of banking and changes in the operating landscape make it imperative that the Bank remains agile, adaptable, and properly positioned to respond appropriately to developments, whilst remaining a competitive and forward-looking institution.

“The proposed resolutions are aimed at ensuring that your company can take advantage of emerging business opportunities and secure long-term profitability and competitive advantage while ensuring increased shareholder value.”

This decision is intended to ensure that Fidelity Bank capitalizes on developing business possibilities, secures profitable growth and edge over competitors, and increases shareholder value.

At Fidelity Bank's 35th Annual General Meeting (AGM) on Tuesday, May 23, shareholders complimented the bank's management and board of directors for producing an extraordinary performance in fiscal year 2022.

The bank expanded by double digits across all main indices, according to its 2022 annual report, which was posted on its website and given to shareholders.

Other Reviews

• Customer deposits grew by 27.4% in 2021FY, from N2 trillion to N2.6 trillion. Net Loans and Advances increased by 27.6% from N1.7 trillion in fiscal year 2021 to N2.1 trillion in fiscal year 2022. 

• Total assets increased by 21.6 percent from N3.3 trillion in the fiscal year 2021 to N4 trillion in the time under review. The half-year (H1) earnings season for publicly traded corporations will begin soon.

• On July 18, 2023, Fidelity Bank closed at N7.50 per share, representing a 72.4 percent year-to-date (YTD) increase. The stock is approaching its 52-week high of N9.82 and low of N2.87.

Many research experts follow the performance of firms on the NGX grade Fidelity Bank stock as BUY.