Fidelity Bank Plc has announced plans to conduct an Extra-Ordinary General Meeting (EGM) on Friday, August 11 to seek shareholder approval to increase its issued share capital from N16 billion to N22.6 billion in a move that would add 13.2 billion ordinary shares of 50 kobo each.
The EGM will also focus on the bank’s capital raising exercise through a public offer for up to 10 billion ordinary shares and a rights issue of up to 3.2 billion ordinary shares. These initiatives are designed to strengthen the bank’s financial position, facilitate expansion both domestically and internationally, and enhance its digital capabilities.
Analysts tracking the Nigerian Bourse have given Fidelity Bank’s stock a “BUY” rating, with Lagos-based Futureview research analysts encouraging investors to consider buying shares in the bank, projecting a return of at least 10 percent above the current market price over the next 12 months.
As of Tuesday, July 18, Fidelity Bank’s stock price closed at N7.50 per share, reflecting an impressive year-to-date return of +72.4 percent. This positive performance places the stock close to its 52-week high of N9.82, with a 52-week low of N2.87.
The bank’s strong growth trajectory and ambition to bolster profitability in an ever-evolving business landscape have been the driving forces behind these strategic decisions. Fidelity Bank emphasizes the need to remain agile, adaptable, and forward-looking, positioning itself to respond effectively to future developments while retaining its competitive edge.
Speaking about the expansion plan, the bank stated, “Advances in technology, the rapid evolution of the business of banking, and changes in the operating landscape make it imperative that the bank remains properly positioned to respond appropriately to developments, while remaining a competitive and forward-looking institution.”
At the bank’s 35th Annual General Meeting (AGM) held on Tuesday, May 23, shareholders praised the board and management for delivering exceptional performance in the full year 2022. According to the bank’s 2022 annual report, significant growth was achieved across all major indicators, with customer deposits rising by 27.4 percent to N2.6 trillion, net loans and advances increasing by 27.6 percent to N2.1 trillion, and total assets growing by 21.6 percent to N4 trillion.
The EGM is expected to be a pivotal moment for Fidelity Bank as it looks to embark on a path of expansion, technological advancements, and increased shareholder value. The bank’s commitment to seizing opportunities, adapting to changes, and maintaining its competitive edge positions it favorably for future growth and profitability.
With the listed companies’ half-year (H1) earnings season soon to commence, investors and stakeholders eagerly anticipate the outcomes of Fidelity Bank’s bold expansion plan and the potential impact on the Nigerian financial sector.
