Fidelity Bank Plc has demonstrated remarkable progress in meeting the Central Bank of Nigeria’s (CBN) recapitalization directive, solidifying its position as one of Nigeria’s most resilient and forward-thinking financial institutions. The bank’s first-phase capital-raising initiative not only exceeded expectations but also showcased an unparalleled surge in investor confidence, with an oversubscription rate surpassing 238% and a share price appreciation of over 100%.
Following the overwhelming success of this first phase, Fidelity Bank is now strategically poised to meet—and potentially exceed—the regulatory recapitalization threshold, while simultaneously accelerating its growth trajectory. The bank’s recent capital raise, executed through a Combined Offer comprising a Public Offer and Rights Issue, received an extraordinary response. The Public Offer was oversubscribed by an impressive 237.92%, attracting 107,588 valid applications for 23,768,724,000 ordinary shares, amounting to a total of ₦231.7 billion. Similarly, the Rights Issue was subscribed at 137.73%, with 6,903 valid applications for 4,407,252,795 ordinary shares, yielding ₦40.7 billion in additional capital.
Dr. Nneka Onyeali-Ikpe, Managing Director and CEO of Fidelity Bank, acknowledged the remarkable investor support, stating, “The overwhelming response to our Combined Offer underscores the strength of the Fidelity Bank franchise in the capital market. This achievement reinforces our commitment to delivering innovative financial solutions and sustainable returns to our stakeholders.”
Building on this momentum, Fidelity Bank has secured shareholder approval to launch the next phase of its capital-raising initiatives. This includes an expansion of the bank’s issued share capital from ₦26.7 billion to ₦36.7 billion, an initiative ratified during an Extraordinary General Meeting held on February 6, 2025. Shareholders also sanctioned the creation of an additional 20 billion ordinary shares at ₦0.50 each, reinforcing the bank’s commitment to meeting the CBN’s newly established ₦500 billion minimum capital requirement for banks with international authorization by March 31, 2026.
Fidelity Bank’s stock performance has been equally impressive, firmly establishing it as a strong contender in the financial sector. The bank’s shares, initially offered at ₦9.75 per share during the Public Offer, have since surged to ₦21.15 as of February 7, 2025, reflecting a remarkable 116% growth. Analysts at Apel Asset Limited further underscored the bank’s robust market standing, noting an 80% return on investment for shareholders who acquired shares in 2023. With a projected upside potential of 28.88%, analysts have set a fair value for Fidelity Bank at ₦23.15, compared to a reference price of ₦19.50—a strong signal of continued investor optimism.
The capital raised will be strategically deployed to support Fidelity Bank’s expansion both locally and internationally, enhance technological infrastructure, and elevate customer experience initiatives. These efforts align with the bank’s long-term vision for innovation and operational excellence.
As Fidelity Bank advances toward the next phase of its capital-raising journey, its leadership remains unwavering in its dedication to delivering sustainable value to stakeholders. With strong investor backing, a strategic capital allocation plan, and a commitment to financial excellence, the bank is not only on track to meet its recapitalization target—it is set to redefine industry standards.
The future of Fidelity Bank shines bright, characterized by resilience, innovation, and an unwavering commitment to integrity. With the financial sector evolving rapidly, Fidelity Bank stands ready to lead the charge, reinforcing its stature as a premier financial institution in Nigeria and beyond.
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