Fidelity Bank Plc is making significant progress toward meeting the recapitalization targets set by the Central Bank of Nigeria (CBN). With the successful completion of the first phase of its capital-raising initiative—oversubscribed by an impressive 238%—and a share price surge of over 100%, investor confidence in the bank is at an all-time high.
This success positions Fidelity Bank not only to meet the new regulatory capital requirement but also to accelerate its growth trajectory.
The bank recently concluded its Combined Offer, consisting of a Public Offer and Rights Issue, both of which exceeded expectations. The Public Offer saw a staggering 237.92% oversubscription, attracting 107,588 valid applications for 23,768,724,000 ordinary shares worth ₦231.7 billion. The Rights Issue also performed exceptionally well, with a 137.73% subscription rate, securing ₦40.7 billion from 6,903 applications for 4,407,252,795 ordinary shares.
Commenting on this achievement, Dr. Nneka Onyeali-Ikpe, Managing Director and CEO of Fidelity Bank, expressed gratitude for investors’ overwhelming support:
“The remarkable success of our Combined Offer is a testament to the strength of the Fidelity Bank brand in the capital market. It reaffirms our commitment to delivering innovative financial solutions and sustainable value to our stakeholders.”
Following this milestone, Fidelity Bank has received shareholder approval to launch the second phase of its capital-raising plan. At an Extraordinary General Meeting on February 6, 2025, shareholders endorsed an increase in the bank’s issued share capital from ₦26.7 billion to ₦36.7 billion, approving the creation of 20 billion additional ordinary shares.
This strategic capital boost ensures Fidelity Bank is on track to meet the CBN’s new minimum capital requirement of ₦500 billion for banks with international authorization by March 31, 2026. The initiative aligns seamlessly with the bank’s long-term vision of sustainable growth and service excellence.
Fidelity Bank’s stock performance further cements its position as a market leader. Since the Public Offer launch at ₦9.75 per share, its stock has soared to ₦21.15 as of February 7, 2025—an outstanding 116% growth. Analysts at Apel Asset Limited highlight an 80% return on investment for shareholders who have held shares since 2023, projecting an additional 28.88% upside potential, with a fair value estimate of ₦23.15 per share.
Proceeds from the capital raise will be strategically deployed toward:
Domestic and international expansion
Technology infrastructure upgrades
Enhanced customer service initiatives
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This underscores Fidelity Bank’s commitment to operational excellence, innovation, and superior banking experiences.
As the bank embarks on the next phase of its capital-raising plan, its leadership remains confident in achieving and potentially exceeding recapitalization targets. With strong investor backing and a clear strategic vision, Fidelity Bank is poised for sustained growth, reinforcing its leadership in Nigeria’s financial sector.
The journey ahead is one of continued innovation and market leadership, ensuring Fidelity Bank remains a trusted financial partner, committed to delivering value for its stakeholders.
