Determined to remain on top and as well address shareholders’ funds shortfall ocassioned by the new capital requirements by the Central Bank of Nigeria (CBN), Fidelity Bank on June 20 launched it’s hybrid offer of a rights issue and initial public offer.
Specifically, the rights Issue consists of 3.2 billion ordinary shares at N9.25 each for existing shareholders, based on one new share for every 10 held as of January 5, 2024.
The IPO, on the other hand, consists of 10 billion ordinary shares at N9.75 each, available to the public.
With the massive participation by shareholders and the investing public, the bank is set to consolidate on its new status as one of the leading tier one lenders, particularly with the successful acquisition of the Union bank’s subsidiary in the United Kingdom.
However, some concerned stakeholders have called on the bank to use the opportunity of wider acceptability to do away with the contract system of staffing and regularise their appointments.
Metrobusinessnews.com (MBN) gathered that the affected staff have been operating in the bank’s branches nationwide for over seven years with Peanuts as salaries, when compared to what they are putting in as contract staff.
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“I have been on this contract system for about eight years now. The salary is nothing to write home about when you consider the fact that we are also university or polytechnic graduates like our other colleagues who are being employed as direct staff of the bank. We complement our condition with commissions that we receive from deposits sourced, but for quite sometime now, it’s been difficult in the industry. But there’s nothing we can do as it’s not better outside either. Our prayer is that the rising profile of the bank will lead to improvement in our conditions of service and particularly by regularizing our employment status,” says a source.
Another source sees the development as exploitative, arguing that it makes sense to employ or regularise appointments of those in their employ, rather than going outside to employ fresh graduates, adding, “Let’s be fair to all, as the basis should be competence and capability.”
Commenting on the capital raising by the bank, Boniface Okezie National Coordinator Progressive Shareholders Association of Nigeria (PSAN) said that although there may not any reason for worries for now, he advised that the Registrars should be on guard to ensure that all necessary information is communicated to the shareholders as at when due.
”For now I don’t think there is any issues on the on going right / IPO offer of Fidelity bank Plc, every thing is moving fine : if there is any issue affecting shareholders not getting their right circulars, we the leader’s on the field will contact the management of the Bank on that but for now it is fine . But one thing I must highlight is that the Registrars have an obligation to make sure that right circulars are posted to the right ful owners in time, because they have all members of the company on the roll calls in their Registers, so they must be up and doing in this regard : I also urge all shareholders to do also visit their respective stock brokers for their right issues circulars. Those who want, and are not existing shareholders, should also visit Fidelity bank branches nearest to them to ask for the offer documents that is the way to go 29th July is just far but not as such by the time u new it, it’s over,” Okezie said.
Efforts to get the bank’s response
were not successful.