Nigeria’s Fidelity Bank Stock Jumps 31% on Plans for Rights Issue and Share Capital Expansion

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Fidelity Bank Plc witnesses a notable 31% Week-on-Week surge in its stock price, reaching N14.20 per share from its 2024 opening value of N10.85 per share.

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This significant appreciation follows the bank’s strategic move to list 3.2 billion ordinary shares at N10 per share through a rights issue on the Nigerian Exchange Limited (NGX).

In documents obtained by THISDAY, Fidelity Bank, represented by its stockbrokers APT Securities & Funds Limited, has submitted an application to NGX for approval of the Rights Issue.

Shareholders’ approval to increase the bank’s share capital from N16 billion to N22.6 billion sets the stage for the planned public offer.

The bank’s share capital is set for a substantial boost with the creation of 13.2 billion additional ordinary shares, each valued at N0.50.

Fidelity Bank aims to strengthen its financial position by launching a public offer for up to 10 billion ordinary shares, complemented by the rights issue allowing existing shareholders to acquire 3.2 billion ordinary shares. Notably, investors stand to gain one new share for every ten shares held.

The resolutions passed at the Extra-Ordinary General Meeting (EGM) empower Fidelity Bank’s Board of Directors to allocate the newly issued shares, enhancing the bank’s overall capital structure, contingent upon regulatory approval.

Gbenga Samson
Gbenga Samsonhttp://ThisDayLive.com
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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