Investor confidence in Fidelity Bank continues to soar as the bank’s stock saw a remarkable 20% growth on the Nigerian Stock Exchange, with its share price surpassing N13 by mid-September. This growth follows the bank’s successful combined Public Offer and Rights Issue, launched on June 20, 2024.
The offer comprised 10 billion ordinary shares priced at N9.75 for the public and 3.2 billion shares at N9.25 for existing shareholders, collectively raising N127.1 billion. After a consolidation phase from June to August, coinciding with the offer’s close, Fidelity Bank’s shares gained more than 20% month-to-date (MtD) in September.
Since August 2018, when Fidelity Bank’s stock dipped below N2, it has experienced a robust recovery, surging over 680%. The bank entered 2024 trading at N10.85, with 900 million shares exchanged. However, recapitalization efforts across Nigerian banks caused a temporary dip to N9 per share in April. Despite this, the stock rebounded, gaining momentum after briefly touching the N9 mark.
Following the completion of the combined offer in August, Fidelity Bank’s share price surged over 20% by mid-September. This growth has been driven by the strong demand for the combined offer and anticipation of an upcoming private placement.
As the first in the current phase of banking recapitalization, Fidelity Bank’s offer was met with significant demand, prompting an extension that added 8.2 billion shares—5 billion sold through the Public Offer and 3.2 billion through the Rights Issue. This demand fueled increased market activity, with over 2 billion shares traded in June and 3 billion in July.
After the offer concluded on August 12, the stock entered a brief consolidation period. However, by mid-September, trading volumes picked up, with weekly volumes reaching 27 million shares, pushing the stock above the N13 threshold and sustaining the bullish trend.
In a note to investors, Fidelity Bank’s Managing Director, Dr. Nneka Onyeali-Ikpe, expressed gratitude for the overwhelming response to the capital raise. “With the conclusion of the Combined Offer, I am delighted to announce that we have surpassed our capital-raise target for the first phase of this exercise,” she stated.
She added, “We extend our deepest gratitude to our customers, new investors, and existing shareholders for their unwavering support throughout this journey. Special thanks go to our regulators—the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and Nigerian Exchange Limited (NGX)—for their roles in ensuring the seamless execution of this first phase of our recapitalization plans.”
Dr. Onyeali-Ikpe highlighted the CBN’s vision for strengthening Nigerian banks to support the country’s growing economy, emphasizing the importance of recapitalization in bolstering confidence in the banking industry.
