Recapitalization: Fidelity Bank Smashes Threshold With 238% Oversubscription

Fidelity Bank Plc is on track to exceed the Central Bank of Nigeria (CBN) recapitalization requirements. This is swiftly following a highly successful first phase of its capital raising initiative. Fidelity Bank recent Combined Offer which comprises Public Offer and Rights Issue has garnered unprecedented investor interest. Achieving over 238% oversubscription and driving its share price up by over 100%.

This exceptional outcome has positioned Fidelity Bank to meet and surpass the regulatory threshold. The achievement will further strengthen its long-term growth trajectory.

Unprecedented Recapitalization Success

The bank recently concluded its equity capital raise with overwhelming success:

Public Offer: The subscription of the public offer has increased by 237.92%, with 107,588 valid applications for 23.77 billion ordinary shares, totaling ₦231.7 billion.

Rights Issue: Achieved 137.73% subscription, with 6,903 valid applications for 4.41 billion ordinary shares, amounting to ₦40.7 billion.

Expressing gratitude to investors, Dr. Nneka Onyeali-Ikpe, Managing Director/CEO of Fidelity Bank, remarked:

“The resounding success of our Combined Offer shows the strength of Fidelity Bank as a brand in the capital market. This overwhelming investor confidence reinforced our commitment to deliver innovative and dynamic financial solutions with sustainable returns for our stakeholders.”

Shareholder Endorsement

Building on this momentum, Fidelity Bank has secured shareholders approval to launch the other phase of its capital raising initiative. During an Extraordinary General Meeting (EGM) on February 6, 2025, shareholders has also approved an increase in the bank’s issued share capital from ₦26.7 billion to ₦36.7 billion, paving the way for creating 20 billion additional ordinary shares.

This move positions Fidelity Bank to comfortably meet the CBN’s new minimum capital requirement of ₦500 billion for banks with international authorization by March 31, 2026.

Impressive Performance

Fidelity Bank stocks has shown remarkable performance, indicating strong investors confidence:

Public Offer price started at ₦9.75 per share but surged to ₦21.15 by February 7, 2025, marking a 116% growth.

Analysts at Apel Asset Limited reported an 80% return on investment for shareholders who have held Fidelity shares since 2023.

Market projections indicate a 28.88% upside potential, valuing the stock at ₦23.15 per share against a reference price of ₦19.50.

Strategic Capital Deployment

Funds from the capital raise will be deployed toward:

Local and international business expansion

Technology infrastructure enhancement

Customer service improvements

These initiatives reflect Fidelity Bank’s commitment to innovation, operational excellence, and long-term value creation.

Next on Recapitalization

As Fidelity Bank advances to the next phase of its recapitalization journey, it remains focused on:

Strengthening its financial position

Sustaining investor confidence

Driving long-term growth in the Nigerian and global banking landscape

With a robust strategy, strong investor backing, and a clear vision for the future, **Fidelity Bank is