Fidelity Bank Shares (2024): Info on How to Buy the Public Offer & Right Issue

Fidelity Bank is Selling Shares to the Public & Existing Investors Now

Currently, Fidelity Bank is offering shares to the public and existing shareholders due to CBN capital base policy to all banks.

This is an opportunity for anyone to invest in one of the best banks in Nigeria and earn passive income.

According to its official statement, Fidelity Bank is: 

“offering for subscription 10 billion ordinary shares of 50 kobo each at ₦9.75 per share through our Public Offer and 3.2 billion ordinary shares of 50 kobo each at ₦9.25 per share through our Right issue”

The combined offers start on 20 June 2024 and end on Monday, 29 July 2024.


Breakdown of Fidelity Bank Shares

From the statement, it shows that Fidelity Bank is offering a Public Offer and the Right Issue shares:

1. Fidelity Bank Public Offer:

The Bank offers 10 billion ordinary shares of 50 kobo each at ₦9.75 per share public offer.

The public offer shares are for new shareholders who want to invest in Fidelity Bank.

For instance, if you are a new investor buying 10,000 units of Fidelity shares, you will pay 97,500 Naira.

2. Fidelity Bank Right Issue:

In addition, Fidelity Bank offers 3.2 billion ordinary shares of 50 kobo each at ₦9.25 per share for Right Issue. Here, the shares amount and price are lower than the public offer.

The right issue shares are for existing shareholders who want to increase their investment in Fidelity Bank.

Although Fidelity is offering lower share units to current shareholders, they enjoy lower a share price compared to new shareholders

So, if you already own Fidelity shares, this discounted offer is for you. You get ₦0.50 less price than what a new shareholder will buy the same shares.

For example, you will pay 92,500 for 10,000 units of Fidelity shares, instead of 97,500

Note: The Fidelity Public Offer and Right Issue shares close on Monday, 29 July 2024.


How to Buy Fidelity Bank Shares

Are you ready to invest in Fidelity Bank? There are 2 ways to buy the Fidelity Bank Shares.

However, below is the 4 steps to buy your preferred unit shares:

  • Get the Fidelity Shares form: Obtain it from any Fidelity Bank branch near you, a participating issue house or download the form from the Fidelity Bank website.
  • Fill the form: Accurately fill out the form with your details and units of shares you are buying
  • Submit the Subscription form: Send your form the either the physical location or email.
  • Make Payment: Pay for the units of Fidelity shares you bought.

That is all!

You are now a shareholder of Fidelity Bank. 

Why Invest in Fidelity Bank Shares

Fidelity bank

If you are contemplating about investing in Fidelity Bank shares, here are some facts about the commercial bank that can aid your decision:

  • Fidelity Bank is the 6th largest bank in Nigeria across key indices including total assets, loans to customers, deposits and equity.
  • Fidelity Shares price increased significantly over the years. Currently traded at around ₦10.20, it rose from around ₦1.4 in 2019 to ₦4.6 in 2022 and to ₦14.40 in January 2024 before slipping to the recent price.
  • Fidelity Bank has consistently been on a growth trajectory, increasing Profit Before Tax by a compound annual growth rate (CAGR) of 64%.
  • The average dividend yield in the past three years is 11%, which ranks amongst the best in the country. Total Dividend per Share increased by 70% in 2023 compared to 2022.

Conclusion

This is an opportunity to buy the Fidelity Bank shares below the current trading price.

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