By Dickson Pat
Fidelity Bank Plc has secured shareholder approval to increase its issued share capital from N26.7bn to N36.7bn, marking a significant step in its strategic expansion plans.
The decision was made during the bank’s Extraordinary General Meeting, which held virtually on February 6, 2025 according to a notice to the Nigerian Exchange Limited.
Under the approved resolutions, the bank will create an additional 20 billion ordinary shares of 50 kobo each, ensuring that the newly issued shares rank pari-passu with existing shares. The Board of Directors has also been granted authority to adjust the share capital as necessary to facilitate future capital-raising transactions.
In addition to the share capital increase, shareholders authorized the Board to raise additional capital through various methods, including private placements, rights issues, and public offers, subject to regulatory approvals.
The capital-raising initiative may be underwritten under the terms set by the Board.
To support its growth objectives, the bank received approval to issue up to 20 billion ordinary shares, not exceeding 30% of its existing issued shares and paid-up capital, through private placements. These placements will be carried out in compliance with regulatory requirements, and the shares will be listed on the Nigerian Exchange Limited to maintain liquidity and transparency.
As part of the corporate restructuring, shareholders approved amendments to Clause six of the Memorandum of Association and Clause five of the Articles of Association to reflect the newly approved share capital.
The revised Memorandum and Articles of Association, as presented during the meeting, were formally adopted.
To ensure a smooth execution of these resolutions, the Board has been authorized to take necessary steps, including engaging professional advisers, securing regulatory approvals from the Securities and Exchange Commission, the Central Bank of Nigeria, and the Corporate Affairs Commission, and fulfilling all required filings and compliance directives.
