Capital Raise: Fidelity Bank shares drop N14.4bn in market value

The share market value of Fidelity Bank Plc on the Nigerian Exchange Ltd. (NGX) dropped by N14.4 billion on Thursday, amid the opening of a N127.1 billion rights issue and public offer.

At the close of trading, the bank’s stock, which opened at N10.85, lost 45k or 4.15 per cent to close at N10.40 per share, following sell pressure from investors.

Supreme News reports that Fidelity Bank earlier opened its shares offer for a rights issue and public offer by way of combined subscription, worth N127.1 billion, to meet the Central Bank of Nigeria’s (CBN) recapitalisation directive.

The acceptance and application lists for the rights issue and public offer, which opened on June 20, will close on July 29.

Under the rights issue, 3.2 billion ordinary shares of 50 kobo each were offered in the ratio of one new ordinary share for every 10 ordinary shares held as of Jan. 5, 2024, at N9.25 per share, totaling N29.6 billion.

For the Public Offer, 10 billion ordinary shares of 50 kobo each were offered to the general investing public at N9.75 per share, to a total of N97.5 billion.

However, Fidelity Bank sold 162.1 million shares worth N1.73 billion, compared to 1.1 billion shares valued at N11.3 billion traded in the previous session, making its total market capitalisation on the Exchange to stand at N332.93 billion.

Meanwhile, on the overall trading, the NGX stock market closed flat, as the market capitalisation, which opened at N56.478 trillion, gained 0.002 per cent or one billion Naira to close at N56.479 trillion.

The All-Share Index also advanced slightly by 0.002 per cent or two points to settle at 99,842.94, compared to 99,840.95 recorded on Wednesday.

As a result, the Year-To-Date (YTD) return rose to 33.53 per cent.

Gains in Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Unilever Nigeria, Guinness, Julius Berger, Transnational Corporation, and other advanced equities dragged the market performance up.

Market breadth also closed positive, with 35 gainers and 17 losers.

On the gainers’ table, Champion Breweries led 34 other advanced equities with a 9.88 per cent increase to close at N3.56 per share.

Transcorp Hotel led 16 other declined equities on the losers’ table with a 10 per cent decrease to close at N90 per share.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 53.64 percent.

A total of 1.3 million shares valued at N25.33 billion were exchanged in 8,364 deals, compared to 1.38 billion shares valued at N16.48 billion traded in 9,899 deals posted previously.

FBN Holdings led the activity table in volume and value, with 871.08 million shares worth N19.12 billion.