Banks in N400b recapitalisation drive at stock market | The Nation Newspaper

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The Nigerian banking industry appears set for a new race for recapitalisation. Some banks are repositioning ahead of emerging changes in national and global

The first set of fund-raising banks are expecting to raise not less than N400 billion from the capital market.

They said that banks might also be taking advantage of favourable capital market situation to foster their strategic growth plans, with most banks racing to invest in technology and digital start-ups, as Nigerian public becomes increasingly attracted to digitized systems.may order a general recapitalisation like the ‘Chukwuma Soludo era’, recent circulars from the apex bank suggest the need for banks to solidify their capital bases.

The structure of most of the offers include provisions for oversubscription, which allow the banks to allot additional shares and raise funds beyond the initial offer sizes.Market analysts projected that the first set of fund-raising banks could raise more than N400 billion, from existing shareholders and new investors.

Nigeria’s premier and largest non-interest bank, Jaiz Bank is undertaking a rights issue of about 5.41 billion ordinary shares of 50 kobo each at offer price of N1 per share, representing initial offer size of N5.4 billion. The rights issue will be pre-allotted on the basis of 87 new ordinary shares for every 250 ordinary shares held as at the close of business on October 6.

Fidelity Bank Plc had launched a hybrid capital raising plan aimed at sourcing some N90 billion in new equity funds from existing and new shareholders. The bank plans to issue 13.2 billion ordinary shares of 50 kobo each to new and existing investors to boost its capital base. Abuja doctor reveals a unique way to permanently cure weak erection, small and shameful manhood, and infertility issues without side effects within a short period. Click now to see!!

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