Stanbic IBTC Holdings has introduced a rights issue worth N148.7 billion to the Nigerian Exchange (NGX). This initiative involves the issuance of 2,944,772,083 ordinary shares, each priced at 50 kobo.
This announcement was made during the “Facts Behind The Figures” event on January 21, 2025, hosted by Mr. Jude Chiemeka, CEO of Nigerian Exchange Limited.
Rights Issue Details
The rights issue is structured to enable existing shareholders to purchase additional shares at a ratio of 5 shares for every 2.2 shares held, at a price of N50.50 per share.
The subscription period commenced on January 15, 2025, and is set to close on February 21, 2025, giving shareholders a window to expand their investment portfolios in Stanbic IBTC Holdings.
Key Remarks from Executives
Mr. Jude Chiemeka, NGX CEO, applauded Stanbic IBTC for utilizing the NGX Invest platform, emphasizing its alignment with the exchange’s technology-driven strategy. He said:
“We are thrilled to welcome Stanbic IBTC as they capitalize on our technology-driven strategy. Their decision to use the NGX Invest platform for capital raising aligns perfectly with our objectives.”
On the company’s decision, Dr. Kunle Adedeji, Acting CEO of Stanbic IBTC Holdings, expressed gratitude for NGX’s support, stating:
“We have chosen to pursue this capital through a rights issue, targeting N148.7 billion after securing approval during our last Annual General Meeting to raise N150 billion.”
Mr. Wole Adeniyi, CEO of Stanbic IBTC Bank, shared that 96.34% of the funds will be directed toward enhancing the bank’s services in corporate, investment, business, commercial, and personal banking.
How the Funds Will Be Used
The N148.7 billion raised through this rights issue will be allocated as follows:
- 42% for corporate and investment banking.
- 27% for business and commercial banking.
- 11% for personal and private banking.
- 2.22% for opening iconic and eco-friendly branches and upgrading distribution channels.
- 14.1% for refreshing IT infrastructure.
This capital raise is a strategic step toward meeting the Central Bank of Nigeria’s recapitalization mandate.
Investment Opportunity
The rights issue presents a significant opportunity for shareholders, as an oversubscription could boost investor confidence in Stanbic IBTC Holdings. The company’s stock is currently priced at N59 as of the market opening on January 22, 2025, reflecting its strong long-term growth potential in the Nigerian stock market.
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