Nigerian capital market stockbrokers urged investors to invest in the ongoing Fidelity Bank Plc N127.10 billion capital raising.
Fidelity Bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. The bank is also simultaneously offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.
The acceptance and application lists for the rights issue and public offer, which opened on June 20, 2024, are scheduled to close on July 29, 2024. The rights issue has been pre-allotted on the basis of one new ordinary share for every 10 existing ordinary shares held as at the close of business on January 05, 2024.
The doyen of stockbrokers, the oldest practicing stockbroker, Alhaji Rasheed Yussuff, said Fidelity Bank has good records going for it with its history of impressive growth and profitability and dividend payments.
According to him, the Bank is known to the market as a good investment, with evident records of impressive returns and corporate responsibility.
Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Sam Onukwue said, ‘he had watched Fidelity Bank sustained commendable growth trajectory over the years.’
He said, “the bank has shown exceptional growth and resilience, rising from being a private merchant in 1987 to becoming one of the largest, publicly quoted commercial banks in Nigeria. Fidelity Bank is one of the seven Nigerian banks with international banking licences.”
Onukwue said, Fidelity Bank’s history of performance underlines the strength of its management, noting that the bank has proven to be able to keep investors’ trust.
Chairman, Nigerian Exchange (NGX), Ahonsi Unuigbe said the combined offer marked a pivotal moment for the bank and the financial services sector, adding that, “This is a testament to Fidelity Bank’s unwavering commitment to strengthening its own capital base and ensuring sustainable growth through amazing roles played by all of the professional parties to this transaction.”
He said, the new banking recapitalisation is aimed at bolstering the resilience and stability of the nation’s financial institutions.
According to him, the ongoing recapitalisation has set robust minimum capital requirements that will ensure Nigerian banks are not only more solvent, but also capable of supporting the growth and development of the economy.
Speaking to the investing public, managing director, Fidelity Bank, Dr. Nneka Onyeali-Ikpe, reiterated the commitment of the bank to delivering impressive returns to shareholders and supporting the growth of the Nigerian economy.
She assured that, with its groundswell of supports from enthusiastic shareholders, customers and stakeholders, the Bank is on course to achieving the N500 billion new minimum capital base, which will clearly confirm the bank, beyond any doubt, as one of the biggest banks in Nigeria.
She said the proceeds from the N127.10 billion capital raising exercise would be instrumental in achieving its strategic growth plan.
A review of official trading reports at the Nigerian stock market showed that investors in Fidelity Bank have earned more than 507 per cent in capital gains over the past five years, between May 31, 2019 and May 31, 2024
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