Fidelity Bank’s Market Cap Hit N243.3bn Amid Private Placement Listing

Kayode Tokede

The market capitalisation of Fidelity Bank Plc hit N243.3billion last week after announcing the completion of its private placement on the Nigerian Exchange Limited (NGX).

With the additional 3,037,414,308 ordinary shares, the total issued and fully paid-up shares of Fidelity Bank has now increased from 28,974,797,023 to 32,012,211,331 ordinary shares of 50 kobo each.

The stock price of Fidelity Bank, thus dropped by 0.35 per cent Week-on-Week (WoW) to N7.60 per share from N7.95 per share it opened for trading.

The NGX at the closing of the transaction last week announced admitting Fidelity Bank’s 3,037,414,308 ordinary shares of 50 kobo each at N4.60 on its daily official list.

According to a notice obtained from the NGX, the listing follows the conclusion of the bank’s private placement.

The statement noted: “Trading Licence Holders are hereby notified that additional 3,037,414,308 ordinary shares of 50 kobo each at N4.60 of Fidelity Bank (Fidelity or the Bank) were on Friday, 11 August 2023, listed on the Daily Official List of the NGX.

“The additional shares listed on NGX arose from Fidelity’s private placement. With this listing of the additional 3,037,414,308 ordinary shares, the total issued, and fully paid-up shares of Fidelity Bank Plc has now increased from 28,974,797,023 to 32,012,211,331 ordinary shares of 50 kobo each”.

Fidelity Bank has continued to record impressive performance across key income and balance sheet lines.

In 2022, the Tier-2 bank posted a five-year record growth of 112.9per cent in profit before tax.

A review of the bank’s 2022 FY audited financials showed the bank’s profit before tax hit N53.7billion from N25.22billion reported in 2021, the highest in five-year.

The record PBT figure surpassed the 2022 financial year target of N48 billion. Looking at its unaudited half year (H1) ended June 30, 2023 results, it is most likely it will beat the 2023 guidance.

Fidelity bank declared N138.4billion profit before tax in H1 2023, a growth of 138 per cent from N25.67billion reported in H1 2022, while profit after tax increased to N53.3billion in H1 2023, an increase of 133 per cent from N22.84billion in H1 2022.