Thursday, August 21, 2025
23.1 C
Lagos

Fidelity Bank Stock Records Over 20% Growth Following Combined Offer

Growing investor confidence and strong market participation have continued to boost optimism about Fidelity Bank’s stock as the bank experienced a remarkable 20% surge on the Nigerian stock market, with its share price surpassing the N13 mark by the third week of September.

This upward trend follows the bank’s combined offer, which included a Public Offer and Rights Issue launched on June 20, 2024.

The combined offer consisted of 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. After a consolidation period from June to August, coinciding with the close of the combined offer, Fidelity Bank’s shares have gained over 20% month-to-date (MtD) in September.

Fidelity Bank has maintained a robust bullish trajectory since August 2018, when its stock dipped below N2. Since then, it has surged by more than 680%. The bank started trading in 2024 at N10.85, with 900 million shares exchanged.

However, uncertainties related to recapitalisation efforts among major Nigerian banks led to a temporary decline to N9 per share in April. Despite this setback, the stock regained its upward momentum after touching a low of N9.00.

Following the completion of the combined offer in August, Fidelity Bank’s share price climbed once again, gaining over 20% by mid-September. A key factor contributing to this latest surge is the successful combined offer, which paves the way for an upcoming private placement.

The Fidelity Bank combined offer, which was the first in the current recapitalisation phase in the banking industry, saw significant demand, prompting an extension that added 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.

As the combined offer concluded on August 12, the stock entered a consolidation phase, but trading activity picked up notably by mid-September. Weekly trading volumes reached 27 million shares, pushing the stock past the N13.00 threshold, sustaining its upward trend.

In a recent note to investors, the bank’s Managing Director, Dr. Nneka Onyeali-Ikpe expressed gratitude for the strong response to the capital raise, stating that, “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.”

“My profound gratitude goes to our customers, new investors and existing shareholders for supporting us in this journey. We will forever be grateful for the support we received during this capital-raise exercise.

“Our deepest thanks go to our regulators namely the CBN, Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX): the CBN for its vision of recapitalising Nigerian banks to ensure banks have sufficient capital to sustain a $1tn economy in the near future and improve the overall confidence in the banking industry; SEC and the NGX for the role they played in ensuring the seamless execution of this first phase of our recapitalisation plans.

spot_img
spot_img

Hot this week

Stanbic IBTC Insurance Hosts 2nd Annuitant Forum on Life in Retirement

Retirement is often viewed as a new beginning, an...

NAICOM, Police Begin Crackdown Against Sale of Fake Insurance Policies

The National Insurance Commission (NAICOM) has launched a crackdown...

T2 Unveils Nigeria’s First Electronic KYC SIM Registration Web App

 T2 proudly announces the launch of its revolutionary electronic...

NAICOM, SEC Initiates Partnership to Drive Insurance Sector Reforms

The Commissioner for Insurance, Mr. Olusegun Ayo Omosehin paid...

How Power Outages Threaten Nigeria’s Digital Economy Dream

By Elvis Eromosele Recently, I found myself inside a multi-storied...

Topics

Dettol Nigeria Support Better Hygiene During Breastfeeding

The World’s leading consumer health and hygiene company, Reckitt...

Sterling HoldCo Moves Ahead in recapitalisation, Cements Regulatory Approval

Sterling Financial Holdings Company PLC has achieved another milestone...

Leadway Health, NUPENG Partner to Provide Comprehensive Health Insurance for 5,000 Tanker Drivers

  L-R: President, Nigerian Association of Road Transport Owners (NARTO),...

Bears Dominate Despite Banking Sector Rebound… NSE ASI down 0.2%

The negative performance of the local bourse lingered yesterday, marking the...

MTN Nigeria Subsidiary, YDFS, Launches MoMo Agent Network

Following the successful award of a Super-Agent License, Y’ello...

LOMA Partners P+ Measurement Services as Official PR Measurement Partner

The Location Marketing Awards (LOMA), often referred to as...

Zenith Bank FY: 2017 Earnings: Resilient Performance… A Clear Case of Undervaluation

Mr. Peter Amangbo, Group MD/CEO, Zenith Bank Plc Zenith Bank...
spot_img

Related Articles

Popular Categories

spot_imgspot_img