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Home Breaking News

AMCON sells over 1.1 billion Fidelity Bank shares

Idika Aja by Idika Aja
July 18, 2025
in Breaking News, Equities, Markets, Stock Market
Adverse effects of high-interest rate spreads on the Nigerian economy
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In a major off-market transaction executed today, July 18, 2025, a total of 1,140,866,892 units of Fidelity Bank Plc shares were crossed in nine negotiated deals, raising fresh questions about shifting ownership dynamics at the tier-2 bank.

Nairametrics can now confirm that the seller in the deal was the Asset Management Corporation of Nigeria (AMCON), while the buyer is a prominent oil and gas security business owner based in the Niger Delta region.

The trade was facilitated by Apel Asset Management Ltd and CardinalStone Securities Ltd, both of whom acted as intermediaries in the cross-deal.

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As of press time, no official statement has been made by Fidelity Bank or the Nigerian Exchange Group (NGX), though capital market stakeholders are closely monitoring developments for clarity on the strategic implications.

The volume of shares exchanged in the transaction has sparked intense speculation in the market, especially given the seller’s identity. AMCON has long held large equity positions in several Nigerian banks as part of its resolution efforts during the post-2009 banking crisis.

The sale of such a sizeable stake could signal a broader exit strategy from Fidelity Bank, now one of the most actively traded stocks on the Exchange.

Market performance

Today’s off-market activity did little to lift the bank’s share price, which closed at N21.10, down 2.1% from the previous day’s close of N21.55.

  • However, the stock has delivered a 20.6% year-to-date return, reflecting investor confidence in the bank’s fundamentals.
  • Fidelity Bank has also been one of the most active stocks on the Nigerian Exchange in recent months. Between April 11 and July 17, 2025, it recorded 4.01 billion shares traded across 41,535 deals, with a total value of N77.8 billion.

This transaction follows closely on the heels of another high-profile off-market trade involving FBN Holdings Plc, in which over 10.4 billion shares valued at N323.4 billion changed hands earlier in the week, fueling chatter about an ongoing wave of strategic repositioning in Nigeria’s banking sector.

Financial performance and recapitalization push

Fidelity Bank is riding high on a wave of strong financial performance. In its unaudited Q1 2025 results, the bank posted a pre-tax profit of N107.77 billion, representing a 167.8% year-on-year growth.

  • Gross earnings also surged by 64.2% to N315.42 billion, highlighting robust top-line momentum.
  • The bank recently concluded a combined capital raise programme, becoming the first bank to respond to the CBN’s new recapitalization directive.
  • The initial target of N127.1 billion was not only met but surpassed, according to a letter from Managing Director Nneka Onyeali-Ikpe to investors.

“With the conclusion of the Combined Offer, I am delighted to announce that we have met and surpassed the capital-raise target we set for ourselves in the first phase of our capital-raise exercise. It is both gratifying and humbling to note this level of investor confidence in the bank,” the MD stated.

The bank launched a combined offer of 10 billion shares at N9.75 via public offer and 3.2 billion shares at N9.25 via rights issue. Following oversubscription, Fidelity Bank obtained SEC approval to extend the offer and issue an additional 8.2 billion shares, bringing the total to 21.4 billion shares (15 billion via rights issue and 6.4 billion via public offer).

Fidelity Bank plans to raise the balance ahead of the 2026 deadline, which will make it a tier one bank.

 

 

Tags: Apel Asset Management LtdCardinalStone Securities LtdFidelity Bank PlcFidelity Bank shares
Idika Aja

Idika Aja

Idika is a Chartered Stockbroker with expertise in financial analysis, equity research, perspective analysis, and investment commentary.

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Comments 1

  1. Ebele Ofojetu says:
    July 18, 2025 at 6:25 pm

    Is this deal for Fidelity or FCMB?

    Reply

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