Naijanetgist reports that Fidelity Bank Plc has gained value in terms of market valuation as a result of active bargain hunting for its shares on the local exchange.
According to year-to-date data, Fidelity Bank's stock price has increased by 33.95%, a figure significant enough to completely eliminate the inflation rate vulnerability of naira assets. Analysts anticipate that the upward trend in its stock price will assist in its acquisition of Union Bank UK Plc.
Last year, Fidelity Bank entered into a binding agreement for the acquisition of a 100 per cent equity stake in Union Bank UK. Since then, management has been silent about the deal, while a decision to raise private capital sent an additional signal to the market.
Data show that in the last six months, investment in Fidelity Bank has delivered more than 59% capital gain, apart from its sustained dividend payment. The combination of its healthy market fundamentals and earnings performance continues to set equities investors on heat to take positions.
In the four trading sessions, Fidelity Bank shares gained 14% as equities investors rallied around the stock ahead of expected healthy earnings performance in its first quarter result.
The tier-2 lender’s golden ambition is to join the Tier-1 banking class, though it has tried albeit unsuccessful as competition for customers’ deposits continues to rise.
Its 28.974 billion shares outstanding worth N168.053 billion to the Nigerian Exchange, from N147 billion reported by MarketForces Africa after the bank announced it raised N14 billion.
Recently, the bank announced a N14 billion capital raise from private investors, though detail remains unclear. The sum was raised from two strategic investors, and maybe a move to tier-1 banking agenda has begun.
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