• Fidelity Bank raises 227 billion naira from share placement

• Central bank review trims oversubscribed offering to 87.7%

• Bank exceeds 500 billion naira capital requirement threshold

Fidelity Bank has reached a key milestone in Nigeria’s banking sector recapitalization drive, disclosing on Friday the final results of a private placement of 14.8 billion ordinary shares.

After review by the Central Bank of Nigeria (CBN), 12.97 billion shares were allotted at 17.50 naira each, raising 227.05 billion naira ($167.4 million).

The offering was initially oversubscribed at 113.4%, reflecting strong demand from institutional investors. However, the CBN’s verification process led to the rejection of several bids. Of the 20 submissions, 14 were approved while five were rejected, accounting for nearly 3 billion shares.

The final subscription rate stood at 87.7%. Large investors dominated the allocation, with subscriptions above 2 billion shares accounting for most of the proceeds. Rejected subscriptions will be refunded starting Monday, April 27.

The placement forms part of Fidelity Bank’s plan to meet new CBN capital requirements, which mandate a minimum capital base of 500 billion naira for banks with international licenses.

Including earlier fundraising rounds, notably a public offer and rights issue in 2024, the bank’s shareholders’ equity, comprising share capital and share premium, has risen to 532.55 billion naira, exceeding the regulatory threshold.

Shares of Fidelity Bank rose 1.3% to close at 22.30 naira on the Nigerian Exchange. The stock has gained 17.37% since the start of the year, despite a slight decline in third-quarter 2025 earnings.

The transaction lifts the bank’s market capitalization to 1.12 trillion naira, returning it to the SWOOT group, Nigerian-listed companies with valuations above one trillion naira.

Across the sector, 33 banks met the CBN’s new capital requirements by the March 31, 2026 deadline. The two-year recapitalization exercise raised about 4.65 trillion naira, roughly $3.4 billion.

Fiacre E. Kakpo