Fidelity Bank has extended the period of its public offer and rights issue to August 12.
The hybrid offer was initially to end on July 29, 2024.
However, according to a corporate disclosure on the NGX website, the bank has been granted approval by the Securities and Exchange Commission (SEC) to extend the offer to August 12.
The extension of the offer comes with an increase in the size of the total offer, from the initial N127.1 billion to N205.45 billion.
On July 26, the bank convened an extraordinary general meeting where it received its shareholders’ approval to increase the number of ordinary shares being offered. The extended offering will see the creation of 8.2 billion shares.
Details of the extended offering
According to the resolutions from the extraordinary general meeting, the extended offering is to ensure the bank can receive surplus monies that may arise from potential oversubscriptions.
5 billion of the 8.2 billion shares in the extended offering go to the public offering, while 3.2 billion shares go to the rights issue. With the public offer shares going for N9.75 and the rights issue shares going for N9.25, the bank expects to make about N78.35 billion from the extended offering.
The public offer and rights issue programme which began on June 12 will see the bank issue 53.4 billion shares and raise a total of N205.45 billion. If the bank can meet its target with the ongoing share offerings, its paid-up capital would increase from N129.7 billion to N339.2 billion.
However, the bank would still have to raise N160.8 billion to meet its N500 billion minimum capital target before March 2026.
Ongoing public offers and rights issue
Currently, five banks are in the market seeking to raise about N1.36 trillion in capital through rights issues and public offers, the largest ever seen at a time in Nigerian stock market history.
GTCO Holdings is on track with its N400.5 billion public offer, where it seeks to issue 9 billion shares at N44.50 each. While Access Holdings is conducting a N351 billion rights issue, with about 17.772 billion shares offered at N19.75 per share.
Access Holdings rights issue is being done based on one new ordinary share for every two existing ordinary shares held as of June 7, 2024.
FCMB Group began its N110.9 billion public offer on July 29, with the bank offering 15.197 ordinary shares at N7.30 per share. And Zenith Bank is due to commence its N290 billion share offering programme on August 1st.
Zenith Bank’s offering will be a combination of rights issues and a public offer.