Fidelity Bank’s capital-raising triumph: A game-changer in Nigeria’s financial sector

Fidelity Bank Plc is making remarkable strides in meeting the recapitalization targets set by the Central Bank of Nigeria (CBN).

The bank’s recent capital-raising initiatives have been met with overwhelming investor confidence, reflected in an oversubscription rate of over 238% in its first phase and a share price growth exceeding 100%.

Following the successful completion of Phase 1 of its capital-raising efforts, Fidelity Bank is now exceptionally well-positioned not only to meet the regulatory threshold but also to bolster its growth trajectory.

The bank recently concluded its equity capital raise through a Public Offer and Rights Issue, collectively referred to as the Combined Offer, with an extraordinary response from investors.

The Public Offer was oversubscribed by an astonishing 237.92%, translating to 107,588 valid applications for 23,768,724,000 ordinary shares, amounting to ₦231.7 billion.

Similarly, the Rights Issue achieved an impressive 137.73% subscription rate, with 6,903 valid applications for 4,407,252,795 ordinary shares, totaling ₦40.7 billion.

READ ALSO: Fidelity Bank completes First Phase of capital raise with oversubscribed public offer, rights issue

Dr. Nneka Onyeali-Ikpe, Managing Director and CEO of Fidelity Bank, expressed gratitude for the overwhelming investor support, stating, “The positive results recorded in our Combined Offer are a testament to the strength of the Fidelity Bank franchise in the capital market.” This strong response reaffirms the bank’s commitment to delivering innovative financial solutions and sustainable returns to its stakeholders.

Building on this success, Fidelity Bank has secured shareholder approval to launch the second phase of its capital-raising initiatives. This includes a significant increase in the bank’s issued share capital from ₦26.7 billion to ₦36.7 billion. At an Extraordinary General Meeting held on February 6, 2025, shareholders approved the creation of an additional 20 billion ordinary shares of ₦0.50 each.

This strategic capital boost positions Fidelity Bank to meet the CBN’s new minimum regulatory capital requirement of ₦500 billion for banks with international authorization by March 31, 2026.

This ambitious goal aligns seamlessly with the bank’s vision for sustainable growth and exceptional service delivery, setting the stage for a dynamic future.

Fidelity Bank’s stock performance has further solidified its position as a leading financial institution.

The share price surged from an initial Public Offer price of ₦9.75 to a high of ₦21.15 on February 7, 2025—an impressive growth rate of over 116%. Analysts from Apel Asset Limited noted an 80% return on investment for shareholders who have held shares since 2023.

Market projections indicate a considerable upside potential of 28.88%, establishing a fair value of Fidelity Bank’s shares at ₦23.15 against a reference price of ₦19.50. These indicators enhance investor confidence and position Fidelity Bank as a compelling investment opportunity within Nigeria’s banking sector.

The capital raised will be strategically deployed for several key initiatives, including local and international business expansion, technological infrastructure enhancements, and customer service improvements.

Fidelity Bank’s proactive approach underscores its commitment to innovation and operational excellence.

As the bank gears up for the next phase of its capital-raising initiative, the primary focus remains on achieving its recapitalization targets while consistently delivering value to stakeholders.

The leadership team is confident that, with sustained investor support and a robust financial strategy, Fidelity Bank will adeptly navigate the evolving Nigerian banking landscape.

Fidelity Bank’s achievements in capital raising mark a transformative moment in its journey toward financial fortification. With strong investor backing, strategic capital allocation, and a clear vision for growth, the bank is not only on track to meet its recapitalization target—it is poised to exceed it.

The road ahead promises sustained growth and innovation, reinforcing Fidelity Bank’s position as a leader in the Nigerian financial sector.

As it looks toward the future, the bank remains steadfast in its commitment to fostering strong investor relationships and delivering financial excellence and exceptional customer satisfaction.

Through proactive measures and impressive market performance, Fidelity Bank is paving the way for a brighter, more prosperous future—one where it continues to lead with integrity and vision in the ever-evolving financial landscape.