In a recent development that has ignited enthusiasm among investors, Fidelity Bank Plc’s stock has been reclassified from a small-price stock to a medium-price stock.
The move comes as the bank’s shares have consistently traded above the N5.00 mark since February 2023, signaling a remarkable upward trajectory in its performance.
Investors and market experts alike have hailed this reclassification as a well-deserved acknowledgment of Fidelity Bank’s significant contributions to the financial services sector and the broader Nigerian economy.
Mr. Boniface Okezie, the National Coordinator of the Progressive Shareholders Association of Nigeria, commended the bank for its commitment to supporting small and medium enterprises (SMEs) while still delivering attractive dividends to shareholders.
He pointed out that Fidelity Bank’s decision to declare a dividend of 50k per share last year was an unprecedented move that caught the market by surprise, solidifying the bank’s reputation as a shareholder-friendly institution.
The NGX Limited, in a statement, explained that the reclassification was based on Rule 15.29 of the Rulebook of the Exchange, 2015 (Dealing Members’ Rules). This rule classifies 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, as medium price stock.
With Fidelity Bank’s shares trading above the N5 mark consistently for over four months, the reclassification was deemed appropriate and in line with regulatory guidelines.
Prince Anthony Omojola, National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), lauded Fidelity Bank’s upward trajectory in terms of performance.
He praised the bank’s strategic decisions to pay interim dividends and venture into substantial investments, demonstrating their readiness to handle larger contracts and yield substantial returns.
The stock’s exceptional performance has also been a boon for bargain hunters on the Nigerian Stock Exchange, reaping bountiful rewards from their investment in the bank’s shares.
Sam Ndata, a veteran Nigerian stockbroker and non-executive director at UIDC Securities Limited, hailed the NGX’s decision to reward Fidelity Bank for its impressive stock performance. He emphasized that when a company performs well, it instils confidence in investors, which in turn strengthens the overall market sentiment.
Fidelity Bank’s remarkable performance in the first half of the year, with shares surging by 32 percent, has earned it the distinction of being the nation’s best-performing bank share.
Buoyed by this success, the bank is planning to expand its presence in at least five African countries, a strategic move bolstered by the proposed acquisition of the London unit of rival Union Bank of Nigeria Plc. The bank’s Group Managing Director, Nneka Onyeali-Ikpe, also revealed that negotiations for a second acquisition are in progress, further underlining the bank’s ambitious growth plans.
