Fidelity Bank Plc is on a remarkable trajectory towards meeting the recapitalization targets mandated by the Central Bank of Nigeria (CBN). The bank has demonstrated exceptional progress in its capital-raising efforts, with a successful first phase that garnered significant investor confidence and support.
After an impressive 238% oversubscription and a share price growth of over 100% in the first phase of its capital-raising initiative, Fidelity Bank is well-positioned to not only meet the regulatory threshold but also fuel its growth trajectory. The recent completion of its equity capital raise through a Public Offer and Rights Issue, collectively known as the Combined Offer, has received an overwhelming response from investors.
The Public Offer was oversubscribed by a staggering 237.92%, with 107,588 valid applications for a total of 23,768,724,000 ordinary shares, amounting to ₦231.7 billion. Similarly, the Rights Issue achieved a remarkable 137.73% subscription rate, with 6,903 valid applications for 4,407,252,795 ordinary shares, totaling ₦40.7 billion.
Dr. Nneka Onyeali-Ikpe, the Managing Director and CEO of Fidelity Bank, expressed deep gratitude for the immense support from investors. She stated, “The positive results recorded in our Combined Offer are a testament to the strength of the Fidelity Bank franchise in the capital market.” This robust response not only highlights investor confidence but also underscores the bank’s commitment to delivering innovative financial solutions and sustainable returns.
In light of this success, Fidelity Bank has obtained shareholder approval to launch the second phase of its capital-raising initiatives. This phase includes a significant increase in the bank’s issued share capital from ₦26.7 billion to ₦36.7 billion, approved during an Extraordinary General Meeting on February 6, 2025. The creation of an additional 20 billion ordinary shares of ₦0.50 each positions Fidelity Bank to meet the CBN’s new minimum regulatory capital requirement by March 31, 2026.
Fidelity Bank’s stock performance has further solidified its standing in the financial sector, with shares rising from an initial offer price of ₦9.75 to a high of ₦21.15 on February 7, 2025—a growth rate of over 116%. Analysts from Apel Asset Limited have noted an impressive 80% return on investment for shareholders who have held shares since 2023, projecting a considerable upside potential and establishing a fair value for the bank.
The funds raised from the capital-raising exercises will be allocated towards local and international business expansion, technology infrastructure enhancement, and customer service improvements. This proactive approach underscores Fidelity Bank’s dedication to innovation and operational excellence, setting the stage for sustained growth and value creation for stakeholders.
As Fidelity Bank looks towards the future, its leadership remains focused on achieving recapitalization targets while delivering value to stakeholders. With unwavering investor support and a robust financial strategy, the bank is poised to navigate the evolving banking sector landscape successfully.
Fidelity Bank’s recent achievements in capital raising mark a significant milestone in its journey towards strengthening its financial foundation. With robust investor backing, strategic capital allocation, and a clear growth vision, the bank is not only on track to meet its recapitalization target but also poised to surpass it, promising a future of sustained growth and innovation in the Nigerian financial sector.
