Nigeria: Fidelity Bank’s Ambitious Move: Plans to Raise N32 Billion from Shareholders

Fidelity Bank Plc is set to embark on a strategic capital raise, targeting N32 billion from its shareholders as a key initiative to fuel the bank’s growth ambitions in the financial year 2024.

In a recent update, the bank has formally applied for approval to offer existing shareholders a 1 for 10 shareholding at N10 per share, according to APT Securities & Funds Limited, the stockbrokers handling the transaction.

As of the close of the trading session on Friday, Fidelity Bank’s stock (Ticker: FIDELITYBK) stood at N14.2 per share on the Nigerian Exchange. Following a 25% positive price movement in the first trading week of 2024, the bank’s valuation reached approximately N455 billion.

This Tier-2 capital deposit money bank plans to issue 3.2 billion ordinary shares to existing shareholders who choose to augment their stake in the bank. Notably, the move comes as part of Fidelity Bank’s broader strategy to bolster its financial position.

Fidelity Bank, through its stockbroker, has already submitted an application to the Nigerian Exchange Limited for approval and listing of the Rights Issue involving 3.2 billion shares at a unit price of N10. This ambitious capital-raising initiative is expected to play a pivotal role in supporting the bank’s growth trajectory in the coming year.