Fidelity Bank Opens Public Offer For Nigerians To Buy Its Shares, Sets Price, Closing Date

Fidelity Bank Plc today, June 20, 2024 opened an application for its N127.2 billion combined rights and public offer.

This is the bank’s first capital raising under the banking recapitalisation exercise mandated by the Central Bank of Nigeria (CBN).

TheNGblog had reported that the apex bank on March 28, 2024, in a circular, directed commercial banks with international authorisation to increase their capital base to N500 billion and national banks to N200bn while those with regional authorisation are expected to achieve a N50 billion capital base.

The bank expects the additional equity capital to support its efforts to drive sustained growth and diversification of its earnings base.

Fidelity Bank offers a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share.

The bank is also simultaneously offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.

The acceptance and application lists for the rights issue and public offer, which open today, are scheduled to close on Monday, July 29, 2024.

The rights issue has been pre-allotted on the basis of one new ordinary share for every 10 existing ordinary shares held as at the close of business on Friday, January 05, 2024.

The Nation reports that Nneka Onyeali-Ikpe, the Managing Director of Fidelity Bank Plc, said the net proceeds of the combined offer would be applied towards investment in information technology infrastructure, business and regional expansion, and product distribution channels.

Fidelity Bank shares are among the best performing on the Nigerian stock market.

Official trading data shows that the over 300,000 current shareholders of the bank have earned 545.83% in capital gains over the past five years, between May 31, 2019, and June 20, 2024,

Fidelity Bank’s share price, which closed May 31, 2019, at N1.68 per share, has successively risen to N10.20 per share by the end of May 2024.

On Thursday, June 19, 2024, the bank’s share price closed at N10.85.

Stanbic IBTC Capital is the lead issuing house to the combined offer. The joint issuing houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited.