Fidelity Bank Plc stock gained 10% on Friday, July 21st, 2023, as Investors react positively to the share capital raise offer.
Recall that the tier 2 bank announced plans to raise capital via a combination of a public offer and a rights issue.
At the current share price of N7.82, the sale could fetch the bank fresh capital of more than N103 billion.
Shares of the bank opened trading at N7.16 per share. Fidelity Bank closed the day at N7.82, with a market capitalization of N226.58 billion.
Back Story
Fidelity Bank says it plans to raise its share capital to N22.60 billion as the company looks to explore strategic growth.
The company noted that the decision to raise share capital is given strategic growth as the company aims for increased profitability, expansion (domestic and international) and enhancement of its digital capabilities.
The proposed resolutions are aimed at ensuring that the company can take advantage of emerging business opportunities and secure long-term profitability and competitive advantage while ensuring increased shareholder value.
The share capital increase is subject to adoption at the company’s Extra Ordinary General meeting are being presented for shareholders’ approval.
What You Should Know
In its audited financial statement for the full year 2022, Fidelity Bank Plc grew its pre-tax Profit to N52bn.
According to the regulatory filing, the bank grew Gross Earnings by 33.9% to N335.897 billion (from N250.774 billion in FY 2021) and Net Interest Income by 61.1% to N152.813 billion (from N94.877 billion in FY 2021) leading to a Profit After Tax of N47.163billion for FY 2022 (from N35.579billion in FY 2021).
Similarly, Total Assets for the Bank now stand at N3.999 trillion (from N3.289 trillion in FY 2021) and Deposit from Customers is now at N2.591 trillion (from N2.024 trillion in FY 2021).
