Fidelity Bank rallies over 38% in September, surpassing N17 amid investor confidence surge

Fidelity Bank’s stock continued its strong upward trend, briefly surpassing the N17 mark during trading on Wednesday before closing at N15.35.

As of the close of trading on September 25, 2024, the bank’s stock had risen by more than 38% this month, a clear indication of robust investor confidence.

This surge in Fidelity’s share price comes on the heels of a successful hybrid offer that was launched on June 20, 2024.

The hybrid offer, which included both a rights issue and an Initial Public Offering (IPO), consisted of 10 billion ordinary shares offered to the public at N9.75 each, alongside 3.2 billion shares reserved for existing shareholders at N9.25. This effort collectively raised N127.1 billion for the bank.

After the offer’s conclusion in mid-August, Fidelity’s stock consolidated throughout the early days of September. By the third week of the month, the stock regained strong bullish momentum, leading to a sharp rally that peaked above N17 during intraday trading.

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Fidelity Bank has maintained a bullish trajectory dating back to August 2018, when its share price had plummeted below N2. Since then, the stock has gained over 680%, making it one of the top performers in the Nigerian banking sector.

At the start of 2024, Fidelity’s stock traded at N10.85, with 900 million shares exchanging hands at that time. However, uncertainties around recapitalization efforts affecting several Nigerian banks briefly pulled the stock down to N9 per share in April.

Despite this dip, Fidelity’s stock quickly rebounded, driven by increased investor activity and strong market sentiment. By the end of September 25, 2024, the share price had surged over 38% from its April lows. The trading volume for the month surpassed 400 million shares, reflecting significant market interest.

The hybrid offer launched in June attracted substantial attention from both institutional and retail investors. Of the 8.2 billion shares issued, 5 billion were sold via the public offer, while the remaining 3.2 billion shares were issued through the rights offer.

This massive interest led to a surge in trading volumes, with over 2 billion shares traded in June and an additional 3 billion in July.

Following the offer’s closure on August 12, Fidelity Bank’s stock consolidated briefly before entering a new phase of strong activity in mid-September. Weekly trading volumes soared to 27 million shares, and by the fourth week of September, over 400 million shares had changed hands, driving the stock to new highs above N17.

In a message to investors, Fidelity Bank’s Managing Director, Nneka Onyeali-Ikpe, expressed gratitude for the overwhelming response to the capital raise, emphasizing the rising investor confidence and strong market participation.

These factors, she noted, have been pivotal in driving the recent bullish sentiment surrounding the bank’s stock, reinforcing its position as one of the most resilient players in the market.