Fidelity Bank Shares has fallen massively as AMCON offloaded over 1 billion units on Fridy and the bank remained silent about it.
In what appears to be a troubling signal for investors, the Asset Management Corporation of Nigeria (AMCON) has discreetly offloaded a staggering 2.29% stake, amounting to 1.15 billion shares in Fidelity Bank Plc, raising questions about the bank’s financial exposure and overall stability.
According to investigations by NaijaOnPoint Nigeria, Fidelity Bank’s total outstanding shares stand at 50.212 billion, with a market capitalisation of ₦1.046 trillion. However, last Friday’s bulk trade of 1.15 billion units, valued at over ₦24 billion, is now fueling speculation about behind-the-scenes developments the bank has failed to disclose.
Despite the volume of the transaction and growing investor curiosity, Fidelity Bank and AMCON have both remained silent, refusing to respond to inquiries. This silence has only deepened suspicion, especially as no official statement has been issued by either party or the Nigerian Exchange Limited (NGX).
A market analyst familiar with the deal described it as a “red flag,” hinting that AMCON may have dumped shares originally held as collateral from a troubled debtor. “AMCON is not in the business of investment; it’s a government debt collector. If it’s offloading this much in one go, something is clearly off,” the source said.
Further complicating the matter, a separate report revealed that 1.14 billion shares were crossed in just nine negotiated deals, facilitated by Apel Asset Management Ltd and CardinalStone Securities Ltd—a sign that these were not normal market trades but high-level strategic exits.
Despite attempts to dismiss the trade as “insignificant,” the market response tells another story. Fidelity Bank’s share price dropped by 1.18%, closing at ₦20.85, down from ₦21.55, even in the absence of any broader market shock—suggesting jittery investor sentiment.
Critics argue that Fidelity Bank’s failure to proactively communicate about the transaction smacks of opacity, raising concerns about governance, transparency, and potential financial liabilities lurking beneath the surface.
“This is how confidence in institutions begins to unravel,” a financial commentator remarked. “You don’t wait for a scandal to erupt before you speak. Transparency is the lifeblood of market trust.”
As speculation mounts, market watchers and shareholders are left wondering: What is Fidelity Bank hiding? And why is AMCON, the government’s debt recovery arm, quietly walking away?
Until Fidelity Bank breaks its silence, doubts around its internal financial health and exposure may continue to deepen.