Fidelity Bank Plc is making significant progress toward meeting the Central Bank of Nigeria’s (CBN) recapitalization requirements, following a highly successful first phase of its capital-raising exercise. The bank recorded an oversubscription of 238% in its recent Combined Offer, reflecting strong investor confidence and a sharp rise in its share price by over 100%.

The bank’s Public Offer and Rights Issue attracted overwhelming participation, with the Public Offer oversubscribed by 237.92%, translating to 107,588 valid applications for 23.77 billion ordinary shares, amounting to ₦231.7 billion. Similarly, the Rights Issue recorded a 137.73% subscription rate, with 6,903 applications for 4.41 billion shares, totaling ₦40.7 billion.

Commenting on the remarkable outcome, Managing Director and CEO of Fidelity Bank, Dr. Nneka Onyeali-Ikpe, expressed gratitude to investors, stating, “The positive results recorded in our Combined Offer are a testament to the strength of the Fidelity Bank franchise in the capital market.”

With the successful completion of this phase, Fidelity Bank has secured shareholder approval to launch the next round of capital-raising initiatives. During an Extraordinary General Meeting on February 6, 2025, shareholders endorsed the expansion of the bank’s issued share capital from ₦26.7 billion to ₦36.7 billion, approving the creation of an additional 20 billion ordinary shares of ₦0.50 each.

This capital boost positions Fidelity Bank to meet the CBN’s minimum regulatory capital requirement of ₦500 billion for banks with international authorization by March 31, 2026. Fidelity’s impressive share performance further underscores investor confidence, with stock prices rising from ₦9.75 during the Public Offer to a high of ₦21.15 on February 7, 2025, marking a 116% increase. Analysts at Apel Asset Limited project a further 28.88% upside, placing the bank’s fair value at ₦23.15 per share.

Proceeds from the capital raise will be used to expand Fidelity Bank’s local and international operations, upgrade technology infrastructure, and enhance customer service. As the bank prepares for the next phase of its recapitalization journey, it remains committed to delivering value to stakeholders and strengthening its position as a leader in Nigeria’s financial sector.