By Ayomide Otitoju
Fidelity Bank Plc is on track to meet the Central Bank of Nigeria’s (CBN) recapitalization requirement well ahead of the March 31, 2026, deadline, following a highly successful capital-raising initiative.
The bank’s first phase of capital raising saw overwhelming investor participation, with the combined offer—comprising a Public Offer and a Rights Issue—oversubscribed by 238%. The Public Offer recorded an impressive 237.92% subscription, attracting 107,588 valid applications for 23.77 billion shares valued at ₦231.7 billion. Meanwhile, the Rights Issue was oversubscribed by 137.73%, securing 6,903 applications for 4.41 billion shares worth ₦40.7 billion.
In response to this resounding investor confidence, Fidelity Bank’s Managing Director and CEO, Dr. Nneka Onyeali-Ikpe, expressed gratitude for the strong support. “The positive outcome of our Combined Offer is a testament to the strength of the Fidelity Bank brand in the capital market,” she said.
With this success, the bank has received shareholder approval to proceed with the second phase of its recapitalization efforts. This includes increasing its issued share capital from ₦26.7 billion to ₦36.7 billion, a move endorsed at an Extraordinary General Meeting (EGM) on February 6, 2025. Shareholders also approved the creation of an additional 20 billion ordinary shares of ₦0.50 each to further strengthen the bank’s financial position.
Fidelity Bank is targeting the CBN’s new minimum capital requirement of ₦500 billion for banks with international authorization, ensuring compliance with regulatory directives while positioning itself for sustained growth.
Strong Market Performance and Investor Confidence
The bank’s impressive financial trajectory is reflected in its stock performance. From an initial offer price of ₦9.75 per share during the Public Offer, Fidelity Bank’s shares surged to a high of ₦21.15 as of February 7, 2025—representing a remarkable 116% increase. Analysts at Apel Asset Limited estimate that long-term investors who held shares since 2023 have realized an 80% return on investment.
Market projections further suggest an additional 28.88% upside potential, with analysts setting a fair value of ₦23.15 per share compared to a reference price of ₦19.50. This outlook reinforces Fidelity Bank’s position as one of Nigeria’s top-performing financial institutions.
Strategic Growth and Expansion Plans
The funds raised from Fidelity Bank’s recapitalization drive will be strategically deployed to enhance operations, expand business activities locally and internationally, and upgrade technological infrastructure. The bank also aims to bolster customer service and innovation, reinforcing its commitment to operational excellence and stakeholder value.
As Fidelity Bank moves into the next phase of capital raising, analysts remain optimistic about its financial outlook. With a solid investor base, strategic capital deployment, and a clear vision for long-term growth, the bank is not only poised to meet its recapitalization target but is also well-positioned to exceed expectations.
A Strong Future for Fidelity Bank
With its proactive approach, robust investor backing, and sustained market confidence, Fidelity Bank is set to remain a dominant player in Nigeria’s financial sector. As it advances toward achieving its recapitalization goals, the bank continues to prioritize financial stability, innovation, and exceptional customer service, ensuring a strong and sustainable future in the evolving banking landscape.
