Fidelity Bank Jumps by 24% after Hybrid Offers
The market value of Fidelity Bank Plc rose by more than 24% week on week as investors accumulated the tier-1 lender shares. The financial services company experienced significant buying interest after its hybrid offers: rights issue and public offer—were closed.
This suggests a strong investors appetite for the bank stock. The bank expects that the capital raised from the hybrid offer will support its efforts to drive sustained growth and diversification of its earnings base.
According to data from the Nigerian Exchange, Fidelity Bank share price surged from N10.95 per share to N13.60. MarketForces Africa reported that the banking index gained 1.26% week on week due to solid buying interest as stakeholders continue to address grey air over FX gain tax.
The Nigerian lender recently completed its hybrid offered in the capital market as part of an effort to boost capital base to N500 billion. Huge volume of Fidelity bank shares exchange hands in the equities market last week.
The bank was one of the top volume drivers on NGX with positive price movement spanning four out of five trading sessions. Data showed that the Nigerian Exchange currently put N435.366 billion as market value of Fidelity Bank 32.012 billion shares outstanding on the trading platform.
At the current market price, Fidelity Bank Plc is trading at less than 6% discount to its 52-week high in the market. The bank share price had surged to N14.4 on the Nigerian Exchange earlier in the year, the price level that marked the best it has achieved in 12 months.
Fidelity Bank Plc enjoys flurry of buying ratings from investment banking firms and stockbrokers on expectation that the Tier-2 lender will maintain earnings uptrend without compromising on asset quality. # Fidelity Bank Jumps by 24% after Hybrid Offers Naira Falls to N1,486 as FX Crisis Deepens
