Fidelity Bank offer extended to Nov 23

Fidelity Bank offer extended to Nov 23

November 12, 2007/Punch



The public offering and Rights Issue of Fidelity Bank Plc has been extended from November 9 to November 23. The offers that opened September 23, was expected to close on Friday.


However, a statement from the bank on Saturday disclosed that the date had been extended following requests from issuing houses and stockbrokers to enable more investors complete applications and make payments.


“Some stockbrokers and issuing houses last week had requested an extension as many of them did not receive the offer documents in good time.


Some investors had also complained of late delivery of Rights circulars from the postal services,†the statement said.


Fidelity Bank is offering 5.501billion shares for public subscription and Rights Issue of 498.899million shares of 50k at N8 per share. The offer is being made at a discount of about 33 per cent on the current market price of N11.99.


Although some stakeholders had expressed concerns about over subscription, the management of the bank had given the assurance that arrangements were in place to absorb the anticipated over subscription.


It is believed that the extension would enable many prospective investors who could not make payment by last Friday to do so.


The offer had attracted endorsements from market operators, businessmen, government officials among others. Fidelity Bank is expected to realise a net proceeds of N45.3bn from the offer.


According to the Managing Director/Chief Executive Officer of the bank, Mr. Reginald Ihejiahi, the funds would be used to expand retail infrastructure, branch network, production distribution capabilities in the electronic banking space and deepen participation in power, oil and gas, real estate and telecommunications sectors.




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