Fidelity Bank to seek shareholders nod for public offer, rights issue, others

Fidelity Bank Plc in a July 19 notice of an Extra-Ordinary General Meeting (EGM) holding on Friday, August 11, 2023 said it will among other special businesses of that day seek shareholders nod that the issued share capital of the bank currently N16billion made up of 32billion ordinary shares of 50kobo each, be increased up to N22.6billion by the creation of up to 13.2billion additional ordinary shares of 50kobo each.

The bank will also seek members approval for the company to undertake a capital raising exercise via a public offer for up to 10billion ordinary shares and rights issue of up to 3.2billion ordinary shares representing one new share for every 10 shares held, to new and existing shareholders respectively.

Also, the Board of Directors of the Company will seek shareholders authorisation to allot the shares issued in accordance with the public offer and rights issue, which shall rank pari-passu with the Company’s existing issued shares, subject to the receipt of relevant regulatory approvals.

Fidelity Bank stock is rated BUY by many research analysts tracking the performance of companies on the Nigerian Bourse.

For instance, Lagos-based Futureview research analysts want investors to buy Fidelity Bank saying that it will return at least 10percent above the current market price over the next 12 months.

The N7.50 per share Fidelity Bank closed on Tuesday July 18 implies year-to-date (YtD) return of +72.4percent. The stock approaches its 52-week high of N9.82 as against a 52-week low of N2.87.

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Fidelity Bank is on a strong growth trajectory and requires additional capital for increased profitability, expansion (domestic and international) and enhancement of its digital capabilities.

“Advances in technology, the rapid evolution of the business of banking and changes in the operating landscape make it imperative that the bank remains agile, adaptable and properly positioned to respond appropriately to developments, while remaining a competitive and forward-looking institution,” Fidelity Bank said in the notice at the Nigerian Exchange Limited.

This move is aimed at ensuring that Fidelity Bank takes advantage of emerging business opportunities and secures long term profitability and competitive advantage, while ensuring increased shareholder value.

At the bank’s 35th Annual General Meeting (AGM) held on Tuesday, May 23, the shareholders of Fidelity Bank commended the board and management of the bank for delivering an exceptional performance in full year 2022.
According to the bank’s 2022 annual report uploaded on its website and distributed to shareholders, the bank grew by double digits along all the major indicators.

Customer deposits increased by 27.4percent from N2trillion in 2021FY to N2.6 trillion. Net Loans and Advances rose by 27.6percent from N1.7 trillion in 2021FY to N2.1 trillion in 2022 FY. Total Assets grew by 21.6percent from N3.3 trillion in 2021 FY to N4 trillion in the period under review. Listed companies’ half-year (H1) earnings season will commence soon.