Fidelity Bank’s Stock Soars 31% as Rights Issue Plans Emerge

Fidelity Bank Plc witnessed a 31% jump in its stock price last week to close at N14.20 per share from N10.85 per share it opened the year. 

This surge is intricately tied to the bank’s strategic move as it gears up to list 3.2 billion ordinary shares of 50 kobo each at N10 per share through a Rights Issue on the Nigerian Exchange Limited (NGX).

The bank, via its stockbrokers APT Securities & Funds Limited, has already submitted the necessary application to NGX for approval of the impending listing.

Behind this upward momentum lies Fidelity Bank’s recent resolution, greenlighted by shareholders, to augment its share capital from N16 billion to N22.6 billion.

The resolution, ratified during an Extra-Ordinary General Meeting (EGM) held virtually on August 11, 2023, paved the way for the bank’s ambitious plans.

The envisaged surge in share capital comes with the creation of a substantial 13.2 billion additional ordinary shares, each priced at N0.50.

Fidelity Bank’s forthcoming public offer aims to introduce up to 10 billion ordinary shares to the market, while existing shareholders can participate in the rights issue, securing 3.2 billion ordinary shares.

Impressively, for every ten existing shares held, investors are entitled to acquire one new share.

This strategic move positions Fidelity Bank for an enhanced financial standing, subject to regulatory approval, as it navigates the path of expansion and increased investor confidence.

As the market eagerly awaits further developments, Fidelity Bank’s recent stock performance signals a positive reception to its future trajectory.