Investors rally behind Fidelity Bank’s N127.1bn combined rights issue, public offer

By Chukwuma Umeorah

Fidelity Bank Plc on Thursday launched its N127.1 billion combined rights issue and public offers, receiving enthusiastic support from key capital market stakeholders. The offers consist of a rights issue of 3.2 billion ordinary shares at N9.25 per share and a public offer of 10 billion ordinary shares at N9.75 per share, set to close on July 29, 2024.
The combined offer has received unreserved support from the management of the NGX, stockbrokers, investors, and customers, who praised Fidelity Bank’s history of impressive growth, profitability, and investor-friendly policies. The bank also boasts the highest corporate governance rating and an average annual capital gain of more than 100 per cent in the stock market.
The Doyen of Stockbrokers, Rasheed Yussuff, highlighted Fidelity Bank’s consistent dividend payments and robust financial performance, making it an attractive investment. According to the stockbroker, who has over five decades in the capital market, “Fidelity Bank has been hitting all positive records that should encourage investors to buy more into it.”
Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Sam Onukwue, commended the bank’s growth trajectory since its founding in 1987, emphasizing its resilience and management strength.
The Chairman of NGX, Ahonsi Unuigbe, described the combined offer as a pivotal moment for both Fidelity Bank and the financial services sector. He praised the bank’s commitment to strengthening its capital base, which he believes will enhance the resilience and stability of Nigeria’s financial institutions. “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.”
According to him, the ongoing recapitalization 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.
On his part, Acting Chief Executive Officer of NGX, Jude Chiemeka, commended Fidelity Bank’s transparency and performance, reinforcing NGX’s commitment to supporting the bank in its capital market endeavours.
Dr. Kamoru Yusuf, founder of KAM Holding, emphasized the bank’s role in supporting the Nigerian economy and companies like his. He confirmed that KAM Holding has greatly benefited from Fidelity Bank’s financial support, making investment in the bank synonymous with investing in Nigeria’s economic growth.
Addressing investors, the Managing Director/CEO of Fidelity, Dr. Nneka Onyeali-Ikpe, reiterated the bank’s commitment to delivering impressive returns and supporting economic growth. She outlined the strategic goals for the capital raised, including business expansion, technological transformation, and diversification.

 

“We will strategically expand our footprints within and outside Nigeria to serve a broader customer base and unlock new market opportunities. We are committed to leveraging proprietary technology to improve operational efficiency and deliver exceptional customer service,” she stated.
Fidelity Bank’s performance in the stock market underscores its value. Over the past five years, the bank has delivered a 507.14 per cent capital gain, with an average annual return of 101.43 percent. This outpaces the overall market and sector benchmarks, demonstrating its attractiveness as an investment option.
Onyeali-Ikpe emphasized that with the capital raise, the bank is poised to enhance its capacity to support customers, drive business growth, and foster economic development. “The bank’s proactive approach, being the first to launch an offer post-CBN directive, further cements its leadership position in the industry.
“Our track record of accelerated growth and consistent dividend payment is a testament to this,” Onyeali-Ikpe affirmed, as she highlighted the bank’s vision to become a market leader not just in Nigeria, but internationally.

 

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