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Investors set to feast on Fidelity Bank Offer

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As the Fidelity Bank Plc Initial Public Offer (IPO) and Rights Issue open Thursday, investors are set to feast on in the bank’s offerings.

Feelers from investor groups indicate that they are ready to invest massively in the IPO while none of the existing shareholders is ready to forfeit his or her accrued rights to increase holdings.

Managing Director/Chief Executive Officer, Nneka Onyeali-Ikpe had expressed absolute confidence that the offer will be oversubscribed.

Onyeali Ikpe had in an interview said the significant interests already shown by investors is an indication that it will be oversubscribed.

She cited the current interest levels to buttress her assertion that the bank will surpass the target of the IPO to raise over N125billion, stressing that it will be oversubscribed.

In the public offer, 10 billion Ordinary Shares of 50 kobo each will be offered to the general investing public at N9.75 billion per share.

The bank is also offering 3.2billion ordinary shares of 50 kobo each in the ratio of one new ordinary share for every10 ordinary shares held as at January 05,2024 at N9.25 per share under Rights Issue.

Accordingly, the bank is set to raise a total of N127.100 billion by way of a right issue to the existing shareholders and public offer.

Stanbic IBTC Capital is the lead issuing house for the combined offer, while the Joint issuing house includes Iron Global market Limited, Afrinvest Capital Limited, FSL Securities Limited, Future view Financial services limited, Iroko Capital limited , Kairos capital Limited and Planet Capital Limited.

The combined offer, is part of the bank’s strategy to increase its share capital base to the new minimum capital target set for Nigerian commercial banks by the Central bank of Nigeria on March 28, 2024.

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