Stanbic IBTC Holdings has announced a rights issue worth N148.7 billion on the Nigerian Exchange (NGX), offering 2,944,772,083 ordinary shares at 50 kobo each. The announcement was made during the “Facts Behind The Figures” event on January 21, 2025, chaired by Mr. Jude Chiemeka, the CEO of Nigerian Exchange Limited.
Through the rights issue, current shareholders can purchase five common shares at a price of N50.50 each for every 2.2 shares they now own. The opportunity for shareholders to increase their investments in Stanbic IBTC Holdings will be available during the subscription period, which begins on January 15, 2025, and ends on February 21, 2025.
Mr. Chiemeka praises Stanbic IBTC’s use of the NGX Invest platform for capital raising, which aligns with NGX’s technology-driven strategy. Dr. Kunle Adedeji, Acting Chief Executive of Stanbic IBTC Holdings, expresses gratitude for NGX’s support and highlights that the company previously secured approval to raise N150 billion during its last Annual General Meeting, with the current goal being N148.7 billion.
Mr. Wole Adeniyi, CEO of Stanbic IBTC Bank, announces that 96.34% of the proceeds will be allocated to strengthening corporate, investment, business, commercial, and personal banking services.
Stanbic IBTC Holdings plans to channel 42% of the funds into corporate and investment banking, 27% into business and commercial banking, and 11% into personal and private banking. Additionally, 2.22% will be used for opening new iconic and green-rated branches and upgrading distribution channels, while 14.1% will be directed toward IT infrastructure improvements. This capital raise is part of the bank’s strategy to comply with the Central Bank of Nigeria’s recapitalization mandate.
Stanbic IBTC continues to retain a strong long-term buy trend in the Nigerian stock market, and if the offer is oversubscribed, it can boost investor sentiment regarding the company’s shares, which is currently trading at N59 as of January 22, 2025.
