FIDELITYBK | Fidelity Bank Company Update : Capital dilution supports a moderation in valuation

    In H1’23, FIDELITYBK revealed that the changes in its share capital and premium emanated from the private placement of 3.0 billion shares at 50 kobo each. This capital injection, coupled with the bank’s intended capital raise via a right issue of 3.2 billion shares and a public offer, reflects the impetus to support the bank’s capital ratio and operational expansions. We adjusted our 12-month target price to N8.34 (vs. N10.50 previously) and revised our rating on the stock to a HOLD (previously a BUY) to account for the projected ROE contraction over our forecast horizon.


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