Fidelity Bank Plc today, June 20, 2024, opened an application for its N127.2 billion combined rights and public offer. This is the bank's first capital-raising initiative under the banking recapitalization exercise mandated by the Central Bank of Nigeria (CBN).

Legit.ng had reported that the apex bank on March 28, 2024, in a circular, directed commercial banks with international authorization to increase their capital base to N500 billion and national banks to N200bn.

It also said those with regional authorization are expected to achieve a N50 billion capital base.

The bank expects the additional equity capital to support its efforts to drive sustained growth and diversification of its earnings base.

Details of Fidelity Bank's public offer

Fidelity Bank offers a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share.

The bank is also simultaneously offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.

The acceptance and application lists for the rights issue and public offer, which open today, are scheduled to close on Monday, July 29, 2024.

The Nation reports that Nneka Onyeali-Ikpe, the Chief Executive Officer and managing director of Fidelity Bank Plc, said the net proceeds of the combined offer would be applied towards investment in information technology infrastructure, business and regional expansion, and product distribution channels.