The doyen of stockbrokers, the oldest practicing stockbroker, Alhaji Rasheed Yussuff, said Fidelity Bank had good records going for it with its history of impressive growth and profitability and dividend payments.
According to him, the bank is known to the market as a good investment, with evident records of impressive returns and corporate responsibility.
Yussuff, who was already a leading stockbroker and managing director of Trust Yields Securities Limited in 2004-2005 when Fidelity Bank launched its initial public offering (IPO) and listed its shares at the stock market, said the bank had been hitting “all positive records” that should encourage investors to buy more into it.
Referencing the bank’s impressive returns, Yussuff, who has more than five decades in the capital market and was principal dealing clerk for ICON Limited/ICON Stockbrokers in 1976, particularly noted that Fidelity Bank has been paying “good dividends.”
Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, who recalled the founding days of Fidelity Bank in 1987, said he had watched Fidelity Bank sustained commendable growth trajectory over the years.
He said the bank had shown exceptional growth and resilience, rising from being a private merchant in 1987 to becoming one of the largest, publicly quoted commercial banks in Nigeria.
Fidelity Bank is one of the seven Nigerian banks with international banking licences. Onukwue, who is also Managing Director of Mega Equities Limited, said Fidelity Bank’s history of performance underlined the strength of its management, noting that the bank had proven to be able to keep investors’ trust. Chairman, Nigerian Exchange (NGX), Mr. Ahonsi Unuigbe, said the combined offer marked a pivotal moment for the bank and the financial services sector.
“This is a testament to Fidelity Bank’s unwavering commitment to strengthening its own capital base and ensuring sustainable growth through amazing roles played by all of the professional parties to this transaction,” Unuigbe, an investment banker and former director at Standard Bank, said. He said the new banking recapitalisation was aimed at bolstering the resilience and stability of the nation’s financial institutions.
According to him, the ongoing recapitalisation has set robust minimum capital requirements that will ensure Nigerian banks are not only more solvent, but also capable of supporting the growth and development of the economy. Acting Chief Executive Officer, Nigerian Exchange (NGX), Mr. Jude Chiemeka, commended Fidelity Bank for its performance and willingness to avail the investing public of every relevant information.
He assured that the NGX remained committed to supporting companies like Fidelity Bank in its quests to deepen the capital markets and fostering an environment conducive to sustainable growth and innovation. Founder, KAM Holding, Dr Kamoru Yusuf, said Fidelity Bank had shown to be an exceptional bank with focus on the development of Nigerian economy and companies.
He said investing in Fidelity Bank would be an investment in the growth of Nigerian economy and companies like KAM Holding, the nation’s largest wholly indigenous metal and steel production company.
Yusuf, whose group has metamorphosed into a global business conglomerate operating in three countries across two continents, confirmed that KAM Holding had benefited immensely from financial supports from Fidelity Bank.
Yusuf, who was physically present at a session at the NGX to present “facts behind the offer” to the investing public, underlined the relationship between increased capital for a business focussed bank like Fidelity Bank and the overall development of the Nigerian economy.
Fidelity Bank Plc started its N127.1 billion combined rights and public offers to a rousing support from the investing public as key capital market stakeholders recalled the symbolic importance of Fidelity Bank’s impressive growths and investor-friendly disposition over the years.
From the Nigerian Exchange (NGX) to stockbrokers, investors and customers; the N127.1 billion combined rights and public offer received unreserved recommendations, with industry thought leaders citing the performance of Fidelity Bank in its core banking operations and as a quoted company at the stock market.
They said Fidelity Bank’s N127.1 billion combined rights and public offer was the right way for the nation’s banking recapitalisation exercise to start as the bank, which has the highest corporate governance rating and an average annual capital gain of more than 100 per cent at the stock market, has strong appeal to the investing public.
The bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. The bank is also simultaneously offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.
Addressing the investing public at the NGX, Managing Director, Fidelity Bank Plc, Dr Nneka Onyeali-Ikpe, reiterated the commitment of the bank to delivering impressive returns to shareholders and supporting the growth of the Nigerian economy.
She explained that the new capital raising by Fidelity Bank was driven by its proactive business expansion plan having secured shareholders’ approval to raise new equity funds as early as August 2023. The Central Bank of Nigeria (CBN)’s directive on new minimum capital was released in March 2024.
“The offer will increase our capacity to support our customers and their businesses. In summary, this capital raise will help our customers to grow, their businesses to thrive, and their economy to prosper,” Onyeali-Ikpe said.
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