Fidelity CEO stakes N239m in bank’s new share purchase

Nneka Onyeali-Ikpe, CEO of Fidelity Bank Plc has acquired additional 15million units of the bank’s shares in deals worth N239.4million executed within two days.

The transactions done from November 21 to 22 at an average share price of N15.96 per share was disclosed in the bank’s notice of share dealing by insiders released at the Nigerian Exchange Limited (NGX).

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The bank’s condensed unaudited financial statements for the interim period ended September 30, 2024 shows Fidelity grew group’s nine months profit to N224.603billion from N91.753billion in 9M’23, while its gross earnings in the same period rose to N772.465billion from N388.794billion in 9M’23.

In the first half of 2024, Fidelity Bank paid interim dividend of 85kobo per share to shareholders. Fidelity Bank became the first Nigerian bank to initiate a capital-raising exercise in response to the CBN’s directive.

Its combined offer comprised two key components: a Public Offer of 10 billion ordinary shares priced at N9.75 per share; and a Rights Issue of 3.2 billion ordinary shares offered at N9.25 per share.

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Fidelity issued 21.4 billion shares, which included 15 billion shares through the rights issue and 6.4 billion through the public offer. At N16 per share which the stock closed on Monday November 25, it implies an increase this year by 47 percent. The stock had reached a 52-week high of N17.95 and a 52-week low or N7.85.

In the latest share deal, Onyeali-Ikpe bought 9 million units of the bank’s shares at N16.10 per share, while she bought 6 million units at N15.75 per share.

Fidelity Bank had in a remarkable show of resilience surpassed its capital-raising target of N127.1 billion, marking the completion of the first phase of its recapitalisation efforts.

The bank’s offers, necessitated by the recapitalisation directive of the Central Bank of Nigeria (CBN), came amid the impending windfall tax imposed on Nigerian banks by the government.

The CBN’s recapitalisation directive requires tier-1 banks to shore up their capital bases to a minimum of N500 billion by March 2026, a mandate intended to strengthen financial institutions and ensure they are better positioned to handle systemic risks.

Before the capital raise, Fidelity Bank’s paid-up share capital was N129.705 billion, meaning the bank needed to raise a total of N370.295 billion to meet the regulatory requirement.

With the first phase of the bank’s capital raise, which has already surpassed the N127.1 billion target, it leaves a more manageable gap of N243.195 billion.