Fidelity Bank Shareholders Wealth Rises by 125% Ahead of Next Capital Raise
Fidelity Bank Plc market value climbed as investors reacted positively to the financial institution’s capital raising programme announcements. Already, new shareholders that picked the bank public offer has gained more than 133% above offer price of N9.75 in June, 2024. Exiting shareholders who also exercise their rights have gained 125%.
In a statement, Fidelity Bank Plc announced the successful conclusion of its 2024 public offer and rights issue following the completion of the capital verification exercise conducted by the Central Bank of Nigeria (CBN).
The bank also obtained approval of the Basis of Allotment by the Securities and Exchange Commission (SEC). Week on week, the bank’s share price increased by 7% due to increased positioning in the equities segment of the Nigerian Exchange.
The share price settled at N20.80 on Friday, according to its trading data following huge transactions volume valued at more than N426 million.
This lifted market value of Fidelity Bank Plc to N665.853 billion, spread over its 32 million shares outstanding in the local bourse.
In 2024, Fidelity Bank Plc launched its N127.1 billion capital raise from hybrid offers to shareholders as part of an effort to meet its N500 billion new capital requirement for lenders with international authorisation.
Under the Rights Issue, 3,200,000,000 ordinary shares of 50 kobo each was offered in the ratio of 1 new ordinary share for every 10 ordinary shares held as of 05 January 2024, at ₦9.25 per share.
For the public offer, 10,000,000,000 ordinary shares of 50 kobo each will be offered to the general investing public at ₦9.75 per share.
In an official statement, the bank said the combined offer was significantly oversubscribed, a demonstration of investors strong confidence in the Tier-2 lender.
In its regulatory filing, Fidelity Bank told the Nigerian Exchange that it offered recorded 107,588 valid applications for 23,768,724,000 ordinary shares totaling #231,745,059,000.00.
Hence, the offer was 237.92% oversubscribed. It noted that 6,903 valid applications for 4,407,252,795 ordinary shares totaling 840,767,088,353.75 were received on the Rights Issue, which was 137.73% oversubscribed.
“This significant milestone marks the conclusion of the first phase of the Bank’s capital raising towards achieving the N500 Billion minimum regulatory capital requirement for banks with international authorisation”.
Speaking on the combined offer, Dr Nneka Onyeali-lkpe, CON, Managing Director and Chief Executive Officer, Fidelity Bank Ple said: “We are delighted to announce the successful completion of the first phase of our capital raising initiatives through a Public Offer and Rights Issue, which were 237.92% and 137.73% oversubscribed respectively.
“The positive result is a testament to the strength of the Bank’s franchise in the capital market. It is both gratifying and humbling to note this level of investor confidence in the Bank and we extend sincere gratitude to our investors for their continued confidence.
“As we go into the next phase of capital raising, we reaffirm our commitment to providing cutting-edge financial solutions to our customers and sustainable returns to our stakeholders”.
In accordance with the phased implementation plan, the Board of Directors of the Bank at the Extraordinary General Meeting of February 6, 2025, obtained the approval of shareholders to commence the second phase of capital raising initiatives.
The Board remain confident of achieving successful completion of this phase within the CBN’s deadline of March 31, 2026.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving ‘over 8.5 million customers through digital banking channelsits two hundred and fifty-one (251) business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.#Fidelity Bank Shareholders Wealth Rises by 125% Ahead of Next Capital Raise#
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