Fidelity Bank Plc has increased its share capital by 20 billion ordinary shares at N0.50 each, bringing its total to N36.7 billion.
This decision, approved at the Extraordinary General Meeting (EGM) on February 6, 2025, was officially disclosed on the Nigerian Exchange (NGX). The announcement, signed by Company Secretary Ezinwa Unuigboje, provided details on the expansion and the bank’s next steps.
How the Share Capital Grew
Previously, Fidelity Bank’s issued capital stood at N26.7 billion, with 53.4 billion shares valued at N0.50 each. The issuance of an additional 20 billion shares has now increased this to N36.7 billion, maintaining the same share value.
These new shares will hold equal rights as the existing ones, ensuring a seamless transition for shareholders.
Strategic Plan for Raising Capital
The Board of Directors has been authorized to raise capital up to the new N36.7 billion limit through multiple channels:
• Private placements
• Rights issues
• Public offers
• Other approved funding methods
These capital raises may occur in phases based on market conditions and regulatory approvals.
In addition, the Board has the green light to allocate up to 20 billion shares through private placements, representing 30% of the bank’s current shares. The Board will manage key aspects such as timing, pricing, and investor selection.
Key Highlights
• Fidelity Bank’s issued share capital has increased from N26.7 billion (53.4 billion shares) to N36.7 billion (73.4 billion shares).
• The Board has the flexibility to secure additional funding through private placements, rights issues, and public offers.
• The resolution grants authority to complete regulatory filings, appoint advisors, and execute necessary agreements.
Stock Performance in the Market
Fidelity Bank’s shares saw a 60.55% rise in 2024, reflecting strong investor confidence.
• January 2024: Stock opened at N10.65 but remained flat in Q1, dropping to N9 by April.
• Mid-2024 Recovery: Prices began climbing in May, surpassing N13 in September and closing the year at N17.50.
• January 2025: The momentum continued, with the stock reaching N19.45 and trading 292 million shares.
With this upward trend and the latest capital raise, Fidelity Bank is positioning itself for further expansion and increased market strength.
