• Wednesday, July 17, 2024
businessday logo


Fidelity Bank’s IPO will be oversubscribed says Onyeali-Ikpe

Fidelity Bank extends Onyeali-Ikpe’s employment contract as GMD/CEO to 2026

Fidelity Bank’s Initial Public Offer (IPO), and Rights Issue set to launch on Thursday, is anticipated to be oversubscribed, according to Nneka Onyeali-Ikpe, managing director/CEO, in an interview with BusinessDay in The Bahamas.

Onyeali-Ikpe expressed confidence due to the significant interest already shown by investors.

“The IPO is launching on Thursday, June 20, 2024, and we aim to raise N125 billion. Given the current interest levels, we are very confident it will be oversubscribed,” Onyeali-Ikpe stated during the closing day of Afreximbank’s 2024 annual meetings, which also covered Afri-Caribbean trade and investment in Nassau, The Bahamas.

Fidelity Bank had previously announced that it would open its public offer and Rights Issue on Thursday, June 20.

In response to a question about the $40 million from Afreximbank to support Union Bank UK, Onyeali-Ikpe explained, “The $40 million provided by Afreximbank is under the intra-African facility programme, which we used to finance the initial payment for the bank. The initial payment came from our balance sheet. This facility helps our working capital for the bank.”

Last week, the African Export-Import Bank (Afreximbank) announced the disbursement of a US$40-million Intra-African Investment Facility to Fidelity Bank Nigeria Plc to support the acquisition and recapitalization of Union Bank UK as part of its international expansion program.

Read also: Afreximbank disburses $40m to support Fidelity Bank’s acquisition of Union Bank UK

Under the Rights Issue, 3.2 billion ordinary shares of 50 kobo each will be offered at a ratio of 1 new ordinary share for every 10 ordinary shares held as of January 5, 2024, at N9.25 per share. The Public Offer will involve 10 billion ordinary shares of 50 kobo each, available to the general public at N9.75 per share.

As part of this capital-raising process, Fidelity Bank will hold a “Facts Behind the Offer” presentation at the NGX on Thursday, June 20.