Fidelity Bank

[Survival2006]

Originally Posted by Atam-man

Attn Gurus!
Has Fidelity bank released her FYE 2007 Results? I am not sure and have tried searching the net, nothing has come up indicating that the FYE 2007 is out.Grateful thanks in advance!

Fidelity normally releases their result in November.

[pumping]

I will expect it before or during the PO...

[hispy99]

THISDAY ONLINE

Fidelity's PO is @N8. Opens on Sep 24 and closes Nov 9

[chidianosike]

Is it still going to happen? I hear the House of Reps have asked SEC & CBN to stop banks from raising fresh capital from IPO's or P.O's forthwith.

[Geeman]

Originally Posted by chidianosike

Is it still going to happen? I hear the House of Reps have asked SEC & CBN to stop banks from raising fresh capital from IPO's or P.O's forthwith.

An overzealous Chairman of a Committee that was, at the time of the pronouncement, yet to be formally constituted gave the order. He had no such authority. All the relevant regulatory bodies have responded that the committee has no power to issue such an order. So all in all, I expect all proposed offers to go on as planned until a law is passed by the National Assembly to provide otherwise. A committee order is not enough to set aside all the laws that empower the relevant regulatory bodies to do their work.

[enoghayin]

Originally Posted by woroakara

I Understand That Fidelity Wants To Come Out For A Public Offer And Of Course It Means Their Stock Price Will Soon Rise Astronomically From The Grape Vine.

Do You Know When??? And How Much They Will Sell???

yeah, the offer will be open btw sept 27 and nov 9 2007. it is 5.5 billion shares of 50k at N8 each.

[Ahaah]

Originally Posted by Survival2006

Thanks Balaliyu, you spoke my mind (i wonder if that is really possible). In any case, Fidelity does not hold any fundamentals to warrant upsurge in price post offer. At its present price, the stock is overpriced. That trend in NSE for a stock to take off in price after offer will soon be met as more and more individuals begin to see the need to look critically before taking positions in any stock.

The strong arm of EFFICIENCY and CAUTION will soon set in the NSE and then it will be clear that the game is up!!! Fidelity current has over 12b shares outstanding. I am waiting to see how 11kobo dividend will drive the stock

The bank's end of year result may make the price a bit more attractive but I dont think we should expect too much. I have the feeling they reduced the offer price of the new issue from N10 per share to N8 per share with the knowledge that the end of year EPS will not make the initial offer price of N10 per share competitive.

[longus]

Originally Posted by Ahaah

The bank's end of year result may make the price a bit more attractive but I dont think we should expect too much. I have the feeling they reduced the offer price of the new issue from N10 per share to N8 per share with the knowledge that the end of year EPS will not make the initial offer price of N10 per share competitive.

I read they offering IPO for N8 and also the rights issue for N8, how is that a rights issue

[Ahaah]

Originally Posted by longus

I read they offering IPO for N8 and also the rights issue for N8, how is that a rights issue

It is a rights issue because if you pay for part or all the shares offered to you under the rights issue as an existing shareholder of the bank, you are entitled as a right to be alloted all the shares you paid for (they will not return any part of your money back to you as is possible under the public offer). Rights issues are normally offered at a price lower those offered under public offer as compensation for the likely dilution of the future earnings of existing shareholders as a result of the share issues. In this particular case (Fidelity's upcoming share issues) the bank chose to offer both the rights issue and the public offer at the same price.

[pumping]

This is a bad idea. Remember that with right issues you may not get 1:1 so you don't necessarily get all the shares you need. Suppose you have 100 shares of fidelity and you want another 100 shares. If the rights issue gives you 1 for 10, then you can only get 10 shares...so you are no better than the PO guy...only that you know in advance what you will get...there should be some benefit for existing shareholders...haba..
If you get 1:1 or even better..then no wahala...

[hispy99]

Originally Posted by longus

I read they offering IPO for N8 and also the rights issue for N8, how is that a rights issue

Just curious, this is the first time I am coming across a Rights Issue offered at the same price as the PO.

At N8, it's already a 33% discount to the last traded price, how low do you really expect them to go to? If they even offered it at N7.50 to existing shareholders, that's a 38% discount. The larger the discount to the ruling price, the more suspicious I would be that I am getting junk.

I don't think Fidelity has any strong selling points, bet let's wait for their prospectus.

[c kenneths]

I was even of the opinion that fidelity bank will do a reconstruction before another PO cause of the qty of their shares in the market.

If they do not sweeten the next result they announce to use it in selling the offers, many ppl might shun the offer cause there might not be too much chance to sell the shares profitably in the near future.

[MR. CEE]

Originally Posted by c kenneths

I was even of the opinion that fidelity bank will do a reconstruction before another PO cause of the qty of their shares in the market.

If they do not sweeten the next result they announce to use it in selling the offers, many ppl might shun the offer cause there might not be too much chance to sell the shares profitably in the near future.

All I want to know is whether is a good buy at this price?

[preciousty]

Originally Posted by c kenneths

Arrangements are being concluded for fidelity bank to reconstruct their share capital in readiness for a public offering later this year.

Please, whenever fidelity bank's share is out, kindly post it here and can you please give me a clue of how to buy the shares? Thanx.

[chidianosike]

i think by the 2nd week of the offer you'll be able to find the subscription forms at the front office of most banks. I guess you can get the forms at any bank, fill it out and pay for your subcription there.

Goodluck

[abelinvest]

Please can someone help me. Do I sell my shares now and use the proceed to enter the Public Offer market making a N4 profit OR I should hold on to the shares till after the Technical Suspension and maybe the end of year results which is expected in November?

[c kenneths]

@Abelinvest, do you think every other person will not be thinking of doing what you are saying?

However the shares are very difficult to sell now. Wait for a result to be released, if it is good then you will be able to sell.