Fidelity Bank Plc has reported an overwhelming response to its recent public offer of 10 billion ordinary shares at ₦9.75 per share, with investors oversubscribing by a staggering 237.92%.
In a statement summarizing the outcome, the bank disclosed that it received 108,046 applications for 23,791,687,463 shares, amounting to a total value of ₦231.97 billion. However, after conducting the Central Bank of Nigeria’s (CBN) Capital Verification Exercise (CVE), only 107,588 applications for 23,768,724,000 shares—valued at ₦231.75 billion—were deemed valid and approved for allotment.
Despite the massive interest, 458 applications totaling 22,765,143 shares (₦221.96 million) were invalidated based on the offer terms and subsequently rejected. Additionally, 548 applications containing odd lots of 198,320 shares (₦1.93 million) were also disqualified.
Bank Absorbs Excess Demand with Additional 5 Billion Shares
Fidelity Bank leveraged a July 26, 2024 shareholder resolution, which permitted the bank to expand its share capital by 8.2 billion ordinary shares, to accommodate a 50% excess demand from the offer. As a result, an additional 5 billion shares were allotted to investors.
The Securities and Exchange Commission (SEC) has reviewed and cleared the basis of allotment, confirming that 107,588 valid applications for the shares have now been processed.
The bank assured investors that their allotted shares will be credited to their Central Securities Clearing System (CSCS) accounts by Thursday, February 13, 2025—five business days after the SEC’s clearance. Investors who do not have CSCS accounts will have their shares credited using a Registrar Identification Number (RIN) in line with SEC’s directive on dematerialization of share certificates.
Furthermore, any surplus funds from oversubscriptions will be refunded no later than February 13, 2025, once SEC finalizes the allotment process.
Rights Issue Also Sees Strong Demand with 137.73% Subscription
Alongside the public offer, Fidelity Bank also completed a Rights Issue of 3.2 billion ordinary shares at ₦9.25 per share. This was structured as one new share for every ten shares held, based on investor records as of January 5, 2024.
The Rights Issue received a 137.73% subscription rate, with a full 100% allotment.
- A total of 7,559 applications for 4,430,290,237 shares (₦40.98 billion) were received.
- 6,903 applications covering 4,407,252,795 shares (₦40.77 billion) were deemed valid.
- 52 applications were submitted for 295,990,800 shares (₦2.73 billion) via the Nigerian Exchange Limited (NGX) tradeable rights system.
Some shareholders partially accepted their rights, while others fully subscribed, leading to additional share allotments:
- 183 shareholders accepted only a portion of their 162,860,544-share allotment, leaving 97,482,219 shares unclaimed.
- 6,668 investors fully accepted their rights, subscribing to 1,474,892,761 shares worth ₦13.64 billion.
- 2,959 applicants applied for an additional 2,570,990,909 shares, with 1,363,738,114 shares (₦12.61 billion) allotted to them, reflecting a 53.04% approval rate for extra shares.
Strong Investor Confidence in Fidelity Bank
The massive oversubscription of both the public offer and rights issue underscores investor confidence in Fidelity Bank’s growth strategy and future prospects. With the additional capital infusion, the bank is well-positioned to expand its operations, enhance its services, and strengthen its market presence.
