Fidelity Bank’s stock has experienced an impressive surge on the Nigerian stock market, with its share price surpassing the N13 mark by the third week of September.
This remarkable growth follows the bank’s combined offer, which included a Public Offer and Rights Issue launched on June 20, 2024.
The combined offer consisted of 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 period from June to August, coinciding with the close of the combined offer, Fidelity Bank’s shares have gained over 20% month-to-date in September.
Fidelity Bank has maintained a robust bullish trajectory since August 2018, when its stock dipped below N2. Since then, it has surged by more than 680%.
The bank started trading in 2024 at N10.85, with 900 million shares exchanged. Despite temporary decline to N9 per share in April due to uncertainties related to recapitalization efforts among major Nigerian banks, the stock regained its upward momentum.
The successful combined offer paved the way for an upcoming private placement, contributing to increased market activity.
High demand for the offer prompted an extension that added 8.2 billion shares. As a result, over 2 billion shares were traded in June and 3 billion in July, with weekly trading volumes reaching 27 million shares by mid-September.
Dr. Nneka Onyeali-Ikpe, Managing Director of Fidelity Bank, expressed gratitude for the strong response to the capital raise.
“With the conclusion of the Combined Offer, I am delighted to announce that we have met and surpassed our capital-raise target for the first phase of this exercise.
“We will forever be grateful for the support we received during this capital-raise exercise. Our deepest thanks go to our regulators, namely the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and the Nigerian Exchange Limited (NGX), for their vision and support in ensuring the seamless execution of this first phase of our recapitalization plans.” she stated.
Fidelity Bank’s successful combined offer and subsequent stock surge demonstrate growing investor confidence and strong market participation. As the bank continues its recapitalization efforts, its stock is poised for further growth.
The Bank’s commitment to recapitalization and growth is evident in its strategic initiatives as its focus on strengthening its capital base will enable the bank to support the Nigerian economy and provide excellent financial services to its customers.
The bank’s stock performance is a testament to its resilience and determination. With a strong leadership team and solid financial foundation, Fidelity Bank is well-positioned to navigate the challenges and opportunities in the Nigerian banking industry.
As Fidelity Bank continues to soar to new heights, its investors and stakeholders can expect sustained growth and returns on their investments.
The bank’s upward trajectory is a reflection of its dedication to excellence and commitment to its customers.
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