Fidelity Bank Plc has embarked on a significant capital-raising initiative amounting to N127.1 billion through a combined rights and public offer. This move has garnered enthusiastic support from stakeholders across the financial markets, underscoring the bank’s robust growth trajectory and investor-friendly reputation.
The offering includes a rights issue of 3.2 billion ordinary shares priced at N9.25 per share, alongside a public offer of 10 billion ordinary shares at N9.75 per share. These initiatives are part of Fidelity Bank’s proactive response to the Central Bank of Nigeria’s (CBN) directive to bolster minimum capital requirements for Nigerian banks.
Nneka Onyeali-Ikpe, the Managing Director and CEO of Fidelity Bank, highlighted that the capital raise aims to enhance market position and expand international footprint. She emphasized the strategic deployment of funds to drive business growth, regional expansion, and technological transformation.
“We are committed to leveraging proprietary technology to improve operational efficiency and deliver exceptional customer service. Fidelity Bank’s CEO, Onyeali-Ikpe stated during a recent presentation at the Nigerian Exchange Limited (NGX) Headquarters in Lagos.
Bank’s Position
Fidelity Bank exceptional performance metrics underscore its attractiveness to investors, with average annual returns exceeding 100% over the past five years. This outperformance extends across major market indices, demonstrating Fidelity Bank’s capability to deliver superior shareholder value amidst challenging economic conditions.
Moreover, Fidelity Bank’s commitment to corporate governance excellence has been reaffirmed with a CG+ rating—the highest under the Corporate Governance Rating System (CGRS). This accolade underscores the bank’s adherence to global best practices and full disclosure. The bank reassuring investors of its steadfast commitment to transparency and ethical business practices.
The Bank’s robust balance sheet and sustained growth in key financial indicators, including a 131.5% increase in Profit Before Tax (PBT) in 2023. Fidelity Bank is well-positioned to capitalize on emerging opportunities in the banking sector and beyond. The bank’s expansion strategies include penetrating new markets within and outside Nigeria, supported by recent acquisitions and strategic partnerships.
Furthermore, Fidelity Bank’s capital raising exercise marks a pivotal moment in Nigeria’s banking landscape, setting new benchmarks for capital adequacy and operational excellence. As the bank continues to chart a path towards becoming a market leader. Investors can expect sustained growth, enhanced profitability, and value creation in the years ahead.
In conclusion, we at Fundvine Capital and Securities Limited, a licensed stockbroking firm and issuing house, we are fully equipped to assist, process, and facilitate your participation, whether you are a new or existing subscriber. We eagerly anticipate the opportunity to do business with you.
