By Ajibola Olaide, JKNMedia Reporter
THE INVESTING public has shown resonant support for Fidelity Bank Plc’s N127.1 billion combined rights and public offers, reflecting confidence in the bank’s impressive growth and investor-friendly track record.
Stakeholders from the Nigerian Exchange (NGX), stockbrokers, and investors have all lauded the move, highlighting Fidelity Bank’s stellar performance in both core banking operations and as a quoted company.
Industry leaders note that they view the capital raise as a pivotal step in Nigeria’s banking recapitalization efforts given its history of strong corporate governance and significant annual capital gains, averaging over 100 percent, make it an attractive option for investors.
The offer, in a press release, includes a rights issue of 3.2 billion ordinary shares at 50 kobo each, priced at N9.25 per share, and a public offer of 10 billion ordinary shares at N9.75 per share.
Opened on June 20, 2024, the bank announces that the acceptance and application lists will close on July 29, 2024, adding that existing shareholders are entitled to one new share for every ten held as of January 5, 2024.
Alhaji Rasheed Yussuff, the Doyen of Stockbrokers, emphasized Fidelity Bank’s consistent growth, profitability, and dividend payments, underscoring its reputation as a sound investment.
Yussuff, a veteran with over five decades in the capital market, praised the bank’s performance since its initial public offering in 2004.
Mr. Sam Onukwue, Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), noted Fidelity Bank’s exceptional growth from its founding as a private merchant bank in 1987 to its current status as one of Nigeria’s largest publicly quoted commercial banks with an international banking license. Onukwue highlighted the bank’s resilience and management strength.
Mr. Ahonsi Unuigbe, Chairman of the Nigerian Exchange (NGX), described the combined offer as a landmark for both Fidelity Bank and the financial services sector, reinforcing the bank’s commitment to capital strengthening and sustainable growth.
Acting Chief Executive Officer of NGX, Mr. Jude Chiemeka, commended Fidelity Bank for its transparency and performance, pledging continued support from the NGX to foster market growth and innovation.
Dr. Kamoru Yusuf, founder of KAM Holding, lauded Fidelity Bank’s contributions to the Nigerian economy, noting significant benefits to his company from the bank’s financial support. Yusuf emphasized that investing in Fidelity Bank equates to investing in the nation’s economic growth.
At a session at the NGX, Managing Director of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, reaffirmed the bank’s commitment to delivering substantial returns to shareholders and supporting the Nigerian economy. She highlighted that the capital raise aligns with Fidelity Bank’s proactive expansion plans, approved by shareholders in August 2023, ahead of the Central Bank of Nigeria’s (CBN) new minimum capital directive issued in March 2024.
Onyeali-Ikpe outlined that the raised funds would enhance business growth, regional expansion, technological transformation, and diversification. She assured stakeholders of the bank’s path to achieving a new N500 billion capital base, solidifying its status as one of Nigeria’s largest banks.
A performance review showed that Fidelity Bank outperformed major market indices over the past five years, with a 507 percent capital gain, translating to an average annual gain of over 100 percent.
Noting that this far exceeds returns from other asset classes and underscores Fidelity Bank’s value as a premier investment choice, and with a high free float and significant capital appreciation, Fidelity Bank is said to continually be an attractive option for a diverse range of investors.
Currently, the bank’s share price, rising from N1.68 in May 2019 to N10.20 in May 2024, reflects its strong market position and growth trajectory, the press statement reveals.
