Business

Fidelity Bank goes for N127.1bn capital raise

At the backdrop of the banking industry recapitalization drive, Fidelity Bank Plc has concluded arrangements to raise a total of ¦ 127.1 billion by way of a Rights Issue to existing shareholders and a Public Offer.

The combined offer is part of the Bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria in March 2024. Overall, the bank expects that the capital raised would support its efforts to drive sustained growth and diversification of its earnings base.

The offer document which was signed yesterday at the bank’s headquarter in Lagos yesterday indicated that the Rights Issue amounting to 3.2 billion ordinary shares of 50 kobo each will be offered in the ratio of one new ordinary share for every 10 ordinary shares held as at January 05, 2024, at ¦ 9.25 per share, while the public offer of 10 billion ordinary shares of 50 kobo each will be offered to the general investing public at ¦ 9.75 per share.

 

At the signing ceremony, Managing Director and Chief Executive Officer of the bank, Dr. Nneka Onyeali-Ikpe, disclosed that the proceeds of the offer will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.

Meanwhile, the bank’s shares jumped more than 507 percent in capital gains over the past five years, ranking above all other major return benchmarks in the Nigerian Exchange Limited (NGX) and the entire banking sector.

Trading reports in the stock market for the five-year period between May 31, 2019 and May 31, 2024 showed that Fidelity Bank outperformed all key indices at the stock market.

Fidelity Bank’s share price rose by 507.14 percent over the period, representing average annual capital gain of 101.43 percent. On the other hand, the All Share Index (ASI) – the common, value-based index that tracks all share prices at the NGX, which is widely regarded as Nigeria’s benchmark for the equities market, recorded a five-year return of 219.61 percent, an average annual return of 43.9 percent.

 


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Michael Tanyare Professionally known as Starmich is a talented and accomplished individual with a passion for excellence. With a strong background in writing, Michael has established himself as a respected professional in the blogging industry. Beyond his professional endeavors, Michael is known for his diverse range of interests. He is an avid online journalist, which further showcases his well-rounded personality and passion for exploring new horizons. Michael's commitment to continuous growth and learning is evident in his pursuit of excellence. This drive allows him to stay at the forefront of emerging trends and maintain a competitive edge in his field. With a warm and approachable demeanor, Michael is highly regarded for his strong communication skills and ability to connect with others. He thrives in collaborative environments and enjoys building meaningful relationships with colleagues and clients alike. In his free time, Michael enjoys surfing the internet. This balance between his professional and personal life reflects his belief in leading a fulfilling and well-rounded lifestyle. With a proven track record of success and a genuine passion for his work, Michael Tanyare continues to make a significant impact in his field. His dedication, expertise, and personable nature make him a valuable asset to any project or team."

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