Investors are eagerly snapping up shares of Fidelity Bank Plc as the bank’s capital raising efforts gain momentum.
The bank’s ongoing rights and public offers have seen massive subscriptions, with investors eager to take advantage of the attractive offer prices.
Fidelity Bank’s share price has appreciated despite the overall negative performance of the market and the banking sector.
The bank recorded a turnover of 1.73 billion shares worth N18.27 billion in 1,579 deals, accounting for 51% and 35% of total volume and value traded during the week.
Investment experts have categorized Fidelity Bank as a “buy” recommendation, citing the bank’s impressive historical capital gain and performance records.
Subscribing to the rights and public offers is seen as a cheaper way to invest in the bank compared to the secondary market.
Analysts predict that investors in Fidelity Bank’s ongoing rights and public offers stand to reap about 57% in capital gain over a short-term period, making the bank’s shares valuable inflation-hedging assets.
The bank’s strong commitment to supporting businesses and national economic development, as well as its low debt burden, are also seen as positives.
Fidelity Bank has delivered an average annual capital gain of more than 100% over the past five years and ranked among the elite stocks with the highest corporate governance rating at the Nigerian stock market.
The bank’s secondary market performance has been driven by massive expansion in business operations and strong growth in profitability.
With a minimum subscription of 1,000 shares or N9,250 for the rights issue and N9,750 for the public offer, the generality of the people can benefit from the bank’s ongoing offers.
The application list for the offers closes on August 12, 2024.
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