Fidelity Bank Plc is making significant strides toward meeting the Central Bank of Nigeria’s (CBN) new recapitalization threshold, with strong investor confidence and a successful capital-raising initiative. Following the completion of the first phase of its capital raise, which was oversubscribed by an impressive 238%, the bank is well-positioned to not only meet but potentially exceed the regulatory requirement before the March 31, 2026, deadline.
The bank’s combined capital raise recorded overwhelming investor participation. Its Public Offer was oversubscribed by 237.92%, attracting 107,588 valid applications for 23.77 billion shares, valued at ₦231.7 billion. Meanwhile, the Rights Issue saw 6,903 valid applications for 4.41 billion shares, raising ₦40.7 billion at a 137.73% subscription rate.
Expressing gratitude for the strong investor support, Dr. Nneka Onyeali-Ikpe, Managing Director and CEO of Fidelity Bank, said:
“The success of our Combined Offer is a testament to the strength of the Fidelity Bank brand in the capital market. This milestone reflects investor confidence in our long-term vision and commitment to delivering sustainable returns.”
Following this success, the bank has secured shareholder approval to increase its issued share capital from ₦26.7 billion to ₦36.7 billion, with the creation of 20 billion additional shares. This move reinforces its readiness to meet the CBN’s new ₦500 billion capital requirement for banks with international authorization.
Fidelity Bank’s stock performance has also been remarkable, with its share price surging over 116%, from the Public Offer price of ₦9.75 to ₦21.15 as of February 7, 2025. Analysts from Apel Asset Limited estimate an 80% return on investment for shareholders who have held their shares since 2023, while projecting a 28.88% upside potential, setting a fair value at ₦23.15.
The funds raised from the capital drive will support the bank’s expansion plans, technology upgrades, and customer service enhancements, ensuring sustainable growth and operational efficiency.
With a clear strategy and unwavering investor backing, Fidelity Bank is well on course to not only meet the CBN’s recapitalization target but to exceed expectations—solidifying its position as a top player in Nigeria’s financial sector.
