Following a bullish run on the Nigerian stock market in recent months, the Nigerian Exchange Limited (NGX) announced the reclassification of Fidelity Bank Plc from small price stock to medium price stock.
The NGX, in a statement, said the reclassification became
necessary because Fidelity Bank shares have been trading above the N5.00 mark
since February 2023.
According to Exchange, 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.
“Fidelity Bank traded above the N5.00 mark on February 20,
2023 and has remained above the N5 mark up until close of business on 30 June
2023.
“This indicates that Fidelity Bank has been trading above N5
for at least four months in the last six months. Therefore, it should be
reclassified from small price stock to medium price stock,” it pointed out.
The bank has continued to post commendable financial
performance every quarter as it cements its position amongst tier-one banks in
the country.
In 2022, the bank posted a five-year record growth of 113
per cent year-on-year in profit before tax.
On the back of the impressive performance, the bank proposed
the payment of a final dividend of 40 kobo per share for 2022 full year paid on
May 23, 2023 to shareholders.
The trajectory was sustained in first quarter (Q1) 2023,
with gross earnings up 42 per cent to N101 billion.