Fidelity Bank Reclassified as Medium Price Stock

Fidelity Bank reclassified as Medium Price Stock

By THECONSCIENCEng

Following a bullish run in the stock market in recent months, the Nigerian Exchange Limited (“NGX”) on Friday announced the reclassification of Fidelity Bank Plc from small price stock to medium price stock.

A statement by the NGX said the reclassification became necessary because Fidelity Bank Plc. shares have been trading above the N5.00 mark since February 2023.

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“Rule 15.29 of the Rulebook of The Exchange, 2015 (Dealing Members’ Rules) notes that equities priced above N5 per share for at least four of the most recent six months of trading, or new security listings priced above N5 per share at the time of listing on NGX are classified as medium price stock,” the statement said.

“According to NGX, Fidelity Bank Plc. traded above the N5.00 mark on 20 February 2023 and has remained above the N5 mark up until close of business on 30 June 2023.

“This indicates that FIDELITYBK has been trading above N5 for at least four (4) months in the last six (6) months. Therefore, it should be reclassified from small price stock to medium price stock.”

The Nneka Onyeali-Ikpe-led bank has continued to post commendable financial performance every quarter as it cements its position amongst tier-one banks in the country.

Recently, Fidelity Bank Plc announced plans to raise capital via a combination of a public offer and a rights issue. 

The tier 2 bank made this announcement via a press release on the NGX. 

At the current share price of N7.3, the sale could fetch the bank fresh capital of about N96.3 billion. 

Fidelity Bank says it is to raise its share capital to N22.60 billion as the company looks to explore strategic growth. 

This was disclosed in a statement signed by Company Secretary Ezinwa Unuigboje which was sent to Nigeria Exchange Limited.