Stanbic IBTC Launches N148.7bn Rights Issue via NGX  

Stanbic IBTC Holdings has unveiled its N148.7 billion rights issue, offering existing shareholders an opportunity to expand their stake in the company.

The announcement was made during the ‘Facts Behind The Figures’ event hosted by the Nigerian Exchange (NGX) on January 21, 2025.

The rights issue involves the issuance of 2,944,772,083 ordinary shares at 50 kobo each, priced at N50.50 per share. Eligible shareholders are entitled to purchase 5 ordinary shares for every 2.2 shares currently held. The subscription period commenced on January 15, 2025, and is set to close on February 21, 2025.

Speaking at the event, Mr. Jude Chiemeka, CEO of Nigerian Exchange Limited, highlighted Stanbic IBTC’s innovative use of the NGX Invest platform for capital raising. He remarked, “We are thrilled to support Stanbic IBTC in leveraging our technology-driven solutions. Their commitment to using NGX Invest aligns seamlessly with our mission to enable efficient capital market operations.”

Dr. Kunle Adedeji, Acting Chief Executive of Stanbic IBTC Holdings, expressed gratitude to NGX for its partnership and reiterated the company’s strategic goal for the rights issue. “This initiative reflects the approval granted by shareholders during our last Annual General Meeting to raise N150 billion. We aim to generate N148.7 billion through this rights issue to strengthen our banking operations and achieve sustainable growth,” he said.

The majority of the funds raised—96.3 percent—will be directed to Stanbic IBTC Bank, the flagship banking subsidiary of Stanbic IBTC Holdings. According to Mr. Wole Adeniyi, CEO of Stanbic IBTC Bank, 42 percent of the capital will support corporate and investment banking, 27 percent will bolster business and commercial banking, and 11 percent will enhance personal and private banking services.

Additionally, 2.22 percent of the proceeds will fund the establishment of new, environmentally sustainable branches and the upgrade of distribution channels. The remaining 14.1 percent will be allocated toward IT infrastructure improvements.

The rights issue aligns with Stanbic IBTC’s strategy to comply with the Central Bank of Nigeria’s recapitalisation mandate. With its stock priced at N59 as of market opening on January 22, 2025, the company is maintaining a strong buy trend in the Nigerian stock market.

Market analysts anticipate that oversubscription of the offer could further boost investor sentiment, reinforcing Stanbic IBTC’s position as a key player in Nigeria’s financial sector.