Fidelity Bank PLC has seen remarkable growth in its stock performance throughout September, with shares briefly surpassing ₦17 during trading on Wednesday, September 25, 2024, before closing at ₦15.35. The bank’s stock has surged more than 38% month-to-date, driven by strong investor confidence and high trading volumes.
This bullish trend follows the successful completion of Fidelity Bank’s hybrid capital raise, which included a rights issue and an Initial Public Offering (IPO) launched in June 2024. The offer, priced at ₦9.75 per share for the public and ₦9.25 for existing shareholders, raised ₦127.1 billion by mid-August.
Strong Stock Performance
Fidelity Bank’s stock has experienced significant growth over the past several years. Since falling below ₦2 per share in August 2018, the stock has risen by over 680%. In 2024, it began trading at ₦10.85 before dropping slightly due to uncertainties surrounding recapitalization efforts affecting major Nigerian banks. However, by September 25, the stock had surged by over 38%, with trading volumes exceeding 400 million shares for the month.
Capital Raise and Investor Confidence
The hybrid offer launched in June saw the issuance of 10 billion ordinary shares, 5 billion of which were sold to the public and an additional 3.2 billion through the rights issue. This strong demand led to heightened trading activity, with over 2 billion shares traded in June and another 3 billion in July. Following a period of consolidation in August, the stock gained momentum in mid-September, reaching new highs above ₦17.
Fidelity Bank’s Managing Director, Nneka Onyeali-Ikpe, expressed gratitude to investors for their strong support during the capital raise. She attributed the bullish sentiment to rising market confidence and active participation by investors, driving the stock’s impressive performance.
Looking Ahead
Fidelity Bank’s recent gains reflect the continued optimism surrounding its financial position and growth prospects. With its stock up 38% in September and continued strong trading volumes, the bank is poised for further positive movement in the Nigerian equities market.
