Fidelity Bank to List Rights Issue as Stock Price Gains 31% WoW

Kayode Tokede

The stock price of Fidelity Bank Plc appreciated by 31 per cent Week-on-Week (WoW) to N14.20 per share from N10.85 per share it opened for trading in 2024.

The stock price appreciation is on the backdrop of management’s plans to list 3.2billion ordinary shares of 50 kobo each at N10 per share on the basis of one new ordinary share for every ten existing ordinary shares rights Issue on the floor of the Nigerian Exchange Limited (NGX).

Document sighted by THISDAY showed that Fidelity Bank through its Stockbrokers, APT Securities & Funds Limited, submitted an application to NGX for approval to list the Rights Issue.

Shareholders of Fidelity Bank recently passed a resolution to increase its share capital from N16 billion to N22.6 billion, paving the way for its planned public offer to begin.

At an Extra-Ordinary General Meeting (EGM), which was held virtually on August 11, 2023, the bank disclosed plans to increase its share capital from N16 billion to N22.6 billion.

Fidelity Bank’s share capital is poised to surge, with the creation of a whopping 13.2 billion additional ordinary shares each priced at N0.50.

It was learnt that in a bid to increase its financial muscle, the bank will launch a public offer for up to 10 billion ordinary shares. Additionally, the rights issue will allow existing shareholders to snap up 3.2 billion ordinary shares. Intriguingly, for every ten shares an investor holds, they can bag one new share.

The resolutions at the EGM have equipped Fidelity Bank’s Board of Directors with the green light to allocate the freshly issued shares, which will stand toe-to-toe with the bank’s existing shares, subject, to obtaining the nod from regulatory bodies.