In a bid to meet the new capitalization benchmark introduced by the Central Bank of Nigeria (CBN), Tier 2 financial institution, Fidelity Bank, has taken awareness on the sales of its shares to the streets of Lagos State.
On Monday, June 24, 2024, a team pushing the awareness campaign of the sales of Fidelity Bank’s share hit the streets of Lagos.
From public places to motor parks, young men were spotted pasting stickers of the bank with the message “Own A Slice of Our Bank, Buy Fidelity Bank Shares” on commercial vehicles.
It would be recalled that on March 28, 2024, the CBN revised minimum capital requirements for Nigerian commercial banks.
As part of Fidelity Bank’s strategy to increase its share capital base, the bank on Thursday June 20, opened its public offer and Rights Issue in a bid to raise a total of up to N127.100billion by way of a Rights Issue to existing shareholders and a Public Offer (the Combined Offer).
Under the Rights Issue, 3.2 billion ordinary shares of 50 kobo each will be offered in the ratio of 1 new ordinary share for every 10 ordinary shares held as of January 5, 2024, at N9.25 per share.
For the Public Offer, 10 billion ordinary shares of 50 kobo each will be offered to the general investing public at N9.75 per share.
The acceptance and application lists for the Rights Issue and Public Offer opened on Thursday, June 20 and will close on Monday July 29, 2024.
Stanbic IBTC Capital is the Lead Issuing House to the Combined Offer, while 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.
As part of its capital raising process, Fidelity Bank on Thursday June 20 at the Nigerian Exchange Limited (NGX) held a Facts Behind the Offer presentation.
It is expected that the capital raised would support the financial institution’s efforts to drive sustained growth and diversification of its earnings base.
The bank’s shareholders had approved the Rights Issue and Public Offer at the Extra-Ordinary General Meeting held on Friday August 11, 2023.
Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer, Fidelity Bank Plc said at the Combined Offer signing ceremony that the proceeds will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.
Oladele Sotubo, Chief Executive Office, Stanbic IBTC Capital who commended Fidelity Bank’s management team for their commitment towards executing the Combined Offer also lauded their efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks.
Sotubo expressed confidence that the deal would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.
Fidelity Banks share price, which closed May 31, 2019 at N1.68 per share, rose successively to N10.20 per share by the end of May 2024.
The ASI had, during the period, rose from its opening index of 31,069.37 points to close weekend at 99,300.38 points. The NGX Banking Index rose from 361.57 points to 797.37 points.
The NGX 30 Index, which opened the period at 1,286.68 points, closed the period at 3,676.44 points. The NGX Main Board Index appreciated from 1,267.54 points to close weekend at 4,634.31 points.
Speaking on the price of shares, David Adonri, Managing Director, HighCap Securities Limited said the price of any stock in the market is a correct reflection of the market value for the stock.
Also, Aruna Kebira, Managing Director, Globalview Capital Limited said that the market price of a stock represents the disposition of the investing public to the stock at a given period, noting that there should be consideration for both the market value and the book value or fundamentals of a stock.
“It could be summarised that the market price of a stock is premised on the psychology of the market, the markets mood as well as market sentiments,” Kebira said.
Meanwhile, analysts have shared a common opinion that Fidelity Banks share price could double in the period ahead given professional assessment of top traditional performance parameters including the company’s operational reports, investors preference and projections.
Fidelity Bank is a full-fledged customer commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
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