On Wednesday, Fidelity Bank briefly surpassed the N17 mark during trading, maintaining its upward trend that has gained momentum in September, before closing at N15.35.
As of the end of trading on September 25, 2024, the bank’s stock has soared by more than 38%, reflecting strong investor confidence.
This recent rally comes in the wake of the bank’s successful hybrid offer, consisting of a rights issue and an Initial Public Offering (IPO) launched on June 20, 2024.
The offer comprised 10 billion ordinary shares priced at N9.75 for the public and an additional 3.2 billion shares offered to existing shareholders at N9.25, collectively raising N127.1 billion.
Following the conclusion of this offer in mid-August, Fidelity’s stock began to consolidate in the early days of September. By the third week, however, the stock regained bullish momentum.
Share Price Trend
Fidelity Bank’s stock has followed a steady bullish trajectory that dates back to August 2018, when its share price had fallen below N2. Since that time, the stock has gained over 680%.
The bank began 2024 trading at N10.85, with a total of 900 million shares exchanging hands at the time.
However, uncertainties surrounding the recapitalization efforts affecting major Nigerian banks triggered a slight dip, pulling the stock down to N9 per share in April.
Despite this brief setback, Fidelity’s stock quickly resumed its upward climb. As of September 25, 2024, the share price had risen by over 38%, with a monthly trading volume exceeding 400 million shares.
Drivers of Bullish Sentiment
The bank’s hybrid offer launched in June attracted substantial investor interest, leading to the issuance of an additional 8.2 billion shares in July.
Of these, 5 billion shares were sold via the public offer, and 3.2 billion shares were issued through the rights offer.
This strong demand triggered a surge in trading volumes, with over 2 billion shares traded in June and an additional 3 billion in July. By the time the hybrid offer closed on August 12, Fidelity Bank’s stock began consolidating.
However, trading activity picked up sharply by mid-September, with weekly volumes reaching 27 million shares.
By the fourth week of September, over 400 million shares had changed hands, driving the stock to print a higher high above N17.
Meanwhile, in a recent message to investors, Fidelity Bank’s Managing Director, Nneka Onyeali-Ikpe, expressed her gratitude for the overwhelming response to the capital raise.
She highlighted the rising investor confidence and strong market participation as key factors fueling the bullish sentiment surrounding Fidelity Bank’s stock.
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