See how much needed to invest as Fidelity Bank begins sale of its shares

• Fidelity Bank has opened a public offer for Nigerians to purchase its shares as it looks to raise capital, as mandated by the CBN
• Nigerians interested in participating in the public offer will need to contact their stockbrokers or financial advisers
• Fidelity Bank shares have recorded a massive appreciation of more than 500% on the stock market since 2019

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Fidelity Bank Plc today, June 20, 2024 open application for its N127.2 billion combined rights and public offer.

This is the bank's first capital raising under the banking recapitalisation exercise mandated by the Central Bank of Nigeria (CBN).

Fidelity banks shares in 5 years grew by over 500% Photo credit: Fidelitybank
Source: Getty Images

Legit.ng had reported that the apex bank on March 28, 2024 in a circular directed commercial banks with international authorisation to increase their capital base to N500 billion and national banks to N200bn while those with regional authorisation are expected to achieve a N50 billion capital base.

The bank expects that the additional equity capital to support its efforts to drive sustained growth and diversification of earnings base.

Details of Fidelity bank public offer

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 open today, are scheduled to close on Monday, 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 Friday, January 05, 2024.

The Nation reports that Nneka Onyeali-Ikpe, the Managing Director, Fidelity Bank Plc said the net proceeds of the combined offer would be applied towards investment in information technology infrastructure, business and regional expansion, and investment in product distribution channels.

Fidelity bank performance

Fidelity Bank shares is one of the best performing on the Nigerian stock market.

Official trading data shows at the over 300,000 current shareholders of the bank have earned 545.83% in capital gains over the past five years, between May 31, 2019 and June 20, 2024,

Fidelity Bank’s share price, which closed May 31, 2019 at N1.68 per share has successively rose to N10.20 per share by the end of May 2024.

On Thursday, June 19, 2024 the share price of the bank closed at N10.85.

Where to buy Fidelity Bank share

Stanbic IBTC Capital is the lead issuing house to the combined offer. The joint issuing houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited.

CBN clears status of Union Bank, Polaris, others

Legit.ng previously reported that the Central Bank of Nigeria (CBN) reassured the banking public of the safety of their deposits and the resilience of the banking system.

This followed fears in some quarters following the termination of Heritage Bank Plc's license.

The acting director of the apex bank's corporate communications department, Hakama Sidi Ali, refuted rumours that the regulator was considering cancelling the operating licenses of other banks.

Source: Legit.ng