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No extension of Fidelity Bank Offer


October 14, 2007/ Punch



The Managing Director Chief Executive Officer, Fidelity Bank Plc, Mr. Reginald Ihejiahi, has called on the members of the public to seize the opportunity presented by the bank‘s new offer and invest in it as a profitable venture.


He made this statement at a media brief on an update of the offer in Lagos on Saturday.


Ihejiahi said the bank was in the market to raise funds which it intended to use to consolidate on the information technology base of the bank, step up its risk-bearing capacity, open more branches with a wider focus on consumer banking and most importantly, strengthen the dollar balance sheet of the bank.


He recalled that the bank had so far accessed the market three times in the last three years prior to the technical suspension on the bank‘s shares.


He saidthat records have shown so far that there has been a steady increase in the market price of its stocks to the public.


Ihejiahi disclosed that the bank is so far very happy with the rate of subscription to the offer. ”In fact it has been overwhelming. The shares are rising tremendously in our view and from all key indices, we are about to see a double index in our stock. We expect to see a rapid appreciation of the stock after the offer.”


He said the bank, therefore, called on all Nigerians to take advantage of this opportunity and invest in this special offer”, he said.


The bank boss pointed out that all strategies had been put in place to accommodate the anticipated over-subscription expected at the end of the exercised, saying that the call to investors to grab the offer quickly has become so necessary because there were presently no plans for an extension of the offer.


Stressing on the future value of the company, the bank chief stated that the current market price of the stocks, which goes for N8, was a give away price, as it does not in any way represent the intrinsic value of the bank.


He said that there was a Global Depository Rate portion to the offer, adding that in fact, over 73 per cent of it, was in GDR, but maintained that even the depository rate does not make any difference to the Nigerian investors since it was basically done locally.


He said there was a domestic window to the depository rate since it had not been listed on the exchange.


The price of N8 per share was agreed on by the bank because of the previous experiences by other Nigerian banks on share reconstruction.


With a closing share price of N12, at the last offer, the bank‘s stock was seen by many as the most traded in the market last year. The public offer of N50bn by the bank was seen as just a fraction of the several well-established long-term capital plans of the bank.


Ihejiani said that there was a lot of optimism for the banking industry due to the increasing capital requirement of the economy.


He stated that the industry was in an expansionary mode at the moment and that with the current activities at the market, the next five years would witness a wider focus on growing the economy. 


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