Stocks to watch this week are Fidelity Bank, Ecobank and Capital Hotel

As the stock market resumes trading this week, the stocks to watch are Fidelity Bank, Ecobank and Capital Hotel.

Ripples Nigeria stocks watchlist is a selection of stocks monitored for viable trading or investing opportunities. An investor may casually generate a list of equities for investment purposes. But we have taken the pain to do that based on certain parameters in order to save you that hassle.

Kindly note that Ripples Nigeria Stocks Watchlist is not a buy, sell or hold recommendation. It is advisable to consult your financial advisor before making any investment decision.

Fidelity Bank

Fidelity Bank has disclosed that the company is in need of extra funding that will lead to the firm selling part of its stake to new and existing investors.

The company intends to sell 10 billion shares through Public Offer and 3.2 billion shares to existing shareholders of the company through Rights Issue.

Through the sales of the shares, which represent a 3.2 per cent stake, Fidelity Bank will raise over N90 billion, according to analysis of the firm’s stock price.

The Public Offer and Rights Issue will enable new investors and existing shareholders to buy Fidelity Bank’s shares at a lower rate directly from the firm, as against the price offered on the floor of the stock market.

Ecobank

Ecobank suffered a setback in its effort to recover N13.5 billion debt from Oba Otudeko, the largest shareholder of FBN Holdings.

The bank was slammed with N72.7 billion damages by the court in favour of Honeywell Flour Mills after the latter took the lender to court over the impact of Ecobank’s decision to freeze its accounts.

Ecobank had frozen Honeywell Flour Mills’ accounts in an attempt to recover the debt, which Honeywell Flour Mills and Otudeko, its former owner, have denied owing.

READ ALSO: Stock market cap sheds whopping N706.77bn due to selloffs in Fidelity Bank, others

The damage fee is a significant liability on Ecobank, considering it is 23 per cent of the bank’s first-quarter turnover in 2023 when the company generated N313.17 billion.

Although Ecobank said it will appeal the decision, the damage fee could impact the capital market’s confidence towards the financial institution.

Capital Hotel

The Capital Hotel is going private, leaving Ikeja Hotel and Transcorp Hotels as the remaining hospitality business in the stock market.

According to the company, its largest investor, 22 Hospitality Ltd, wants to take Capital Hotel off the public market and it is willing to buy out dissent shareholders.

Shareholders that are against the delisting of Capital Hotel will be paid N5 per share held in the hospitality business, however, shareholders in support will still own shares in the firm when it goes private.

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