Fidelity Bank Stock Soars Over 20% Following Successful Combined Offer
Fidelity Bank has recorded a remarkable growth of over 20% in its stock value, driven by growing investor confidence and strong market participation. By the third week of September, the bank’s share price had surged past N13 on the Nigerian stock market, following its recent combined Public Offer and Rights Issue launched on June 20, 2024.
The bank’s combined offer consisted of 10 billion ordinary shares offered to the public at N9.75 per share and 3.2 billion shares priced at N9.25 for existing shareholders. The total capital raised through this exercise amounted to N127.1 billion. After a consolidation period from June to August, Fidelity Bank’s shares began gaining momentum, experiencing over 20% growth by mid-September.
Fidelity Bank has been on a sustained upward trajectory since its stock dropped below N2 in 2018, now recording a 680% increase in value. Although the stock started trading at N10.85 in 2024, recapitalization efforts in the Nigerian banking industry caused temporary uncertainty, leading the stock to drop to N9 per share in April. However, the share price rebounded following the completion of the combined offer, reflecting renewed investor confidence.
The success of the capital raise is a major factor behind the recent stock surge, as Fidelity Bank prepares for an upcoming private placement. The combined offer attracted significant demand, leading to the sale of 5 billion shares through the Public Offer and 3.2 billion shares via the Rights Issue. This heightened market activity saw over 5 billion shares traded in June and July alone.
By mid-September, Fidelity Bank’s stock continued its upward climb, with weekly trading volumes reaching 27 million shares, pushing the price above N13.00.
In response to the success of the combined offer, Fidelity Bank’s Managing Director, Dr. Nneka Onyeali-Ikpe, OON, expressed her gratitude, stating: “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 further extended appreciation to the bank’s customers, investors, and regulators, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and Nigerian Exchange Limited (NGX), for their roles in ensuring the successful execution of this phase of Fidelity Bank’s recapitalization plans. Dr. Onyeali-Ikpe emphasized that this achievement strengthens the bank’s position as it moves toward supporting Nigeria’s economic growth and ensuring long-term stability in the banking industry.
