Fidelity Bank Plc, a prominent financial institution, recently made headlines with a remarkable achievement in its equity capital raise. The bank experienced an overwhelming response from investors, with a 238% oversubscription during its Public Offer and Rights Issue. This feat reflects the confidence and support of investors in the bank’s financial stability and growth potential.
The success of the capital raise was confirmed after the Central Bank of Nigeria (CBN) conducted a thorough capital verification exercise, and the Securities and Exchange Commission (SEC) approved the Basis of Allotment. A total of 108,046 applications were received for 23,791,687,463 Ordinary Shares, amounting to ₦231,968,952,764.25 during the Public Offer.
Upon review, 107,588 applications for 23,768,724,000 Ordinary Shares, totaling ₦231,745,059,000.00, were found to be valid. However, 458 applications for 22,765,143 Ordinary Shares, totaling ₦221,960,144.25, were rejected due to invalidity. Additionally, 548 applications containing odd lots equivalent to 198,320 Ordinary Shares (₦1,933,620.00) were also rejected. The Public Offer was oversubscribed by 237% and allotted by 150%.
Moving on to the Rights Issue, Fidelity Bank received 7,559 applications for 4,430,290,237 Ordinary Shares, totaling ₦40,980,184,692.25. Among these, 656 applications for 23,037,442 Ordinary Shares, totaling ₦213,096,338.50, were deemed invalid based on the terms of the Rights Issue. The Rights Issue was oversubscribed by 137.73% and allotted by 100%.
Dr. Nneka Onyeali-Ikpe, the Managing Director and Chief Executive Officer of Fidelity Bank Plc, expressed delight at the successful outcome of the capital raising initiatives. She acknowledged the overwhelming investor confidence in the bank, evident in the substantial oversubscription of the Public Offer and Rights Issue. The funds generated from this phase will be utilized for local and international business expansion, technology infrastructure enhancement, and improved customer service.
As the bank proceeds to the second phase of its capital raising drive, the Board of Directors is optimistic about meeting the new regulatory capital requirements set by the CBN before the deadline of March 31, 2026. Fidelity Bank has been at the forefront of financial innovation, becoming the first institution to undertake a public offer on the Nigerian Exchange Group following the revised minimum capital requirement announcement in March 2024.
The bank’s growth trajectory is further exemplified by its impressive stock performance, with shares trading at a high of N21.15 on February 7, 2025, from an initial offer price of N9.75 per share for the Public Offer and N9.25 per share for the Rights Issue in June 2024. This notable growth of over 116% underscores Fidelity Bank’s position as a top player in the banking industry.
With a strong presence in Nigeria and the United Kingdom, Fidelity Bank Plc serves over 8.5 million customers through digital banking channels and a network of 251 business offices. The bank’s commitment to excellence has garnered numerous accolades, including Export Finance Bank of the Year at the 2023 BusinessDay Awards and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards.
In conclusion, Fidelity Bank’s exceptional performance in the recent capital raise reflects its solid foundation, innovative approach, and unwavering commitment to customer satisfaction. As the bank continues its growth trajectory, investors and stakeholders can look forward to a promising future with Fidelity Bank Plc.
