Investor confidence and strong market participation have fueled a notable 20% surge in Fidelity Bank’s stock, with its share price exceeding the N13 mark by the third week of September. This uptick follows the bank’s combined offer, which included a Public Offer and Rights Issue launched on June 20, 2024.
The combined offer involved 10 billion ordinary shares priced at N9.75 for the public and 3.2 billion shares at N9.25 for existing shareholders, collectively raising N127.1 billion. Following a consolidation period from June to August, Fidelity Bank’s shares have risen more than 20% month-to-date (MtD) in September.
Since August 2018, when its stock fell below N2, Fidelity Bank has demonstrated a robust bullish trajectory, surging over 680%. Despite a temporary decline to N9 per share in April due to recapitalization uncertainties among major Nigerian banks, the stock has regained its upward momentum after hitting this low.
The successful combined offer, the first in the current recapitalization phase for the banking industry, saw significant demand, leading to an extension and the addition of 8.2 billion shares. Of these, 5 billion were sold through the Public Offer and 3.2 billion via the Rights Issue. This high demand resulted in increased market activity, with over 2 billion shares traded in June and 3 billion in July.
Although the stock entered a consolidation phase following the combined offer’s conclusion on August 12, trading activity picked up notably by mid-September. Weekly trading volumes reached 27 million shares, pushing the stock past N13.00 and sustaining its upward trend.
In a recent statement, Dr. Nneka Onyeali-Ikpe, Managing Director of Fidelity Bank, expressed her appreciation for the strong response to the capital raise. She stated, “With the conclusion of the Combined Offer, I am delighted to announce that we have met and surpassed our capital-raise target for the first phase of this exercise.”
She also extended gratitude to customers, new investors, existing shareholders, and regulators, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Nigerian Exchange Limited (NGX), for their support and seamless execution of the recapitalization plans.