Yemisi Izuora
Stanbic IBTC Holdings PLC, a member of Standard Bank Group, has announced the opening of its ₦148.7 billion Rights Issue.
The Rights Issue, which opened on 15 January 2025, and closes on 21 February 2025, offers existing shareholders the opportunity to subscribe to 2,944,772,083 Ordinary Shares of 50 kobo each at ₦50.50 per share.
The Rights Issue is structured on a ratio of 5 new shares for every 22 Ordinary Shares held as of 29 October 2024.
This strategic move aims to strengthen the company’s capital base, enhance its funding capacity and position it for sustainable growth as it will enable the company’s banking subsidiary meet the new minimum capital requirement set by the Central Bank of Nigeria (CBN), thereby ensuring regulatory compliance and potentially strengthening its Capital Adequacy Ratio (CAR).
For existing shareholders, the Rights Issue offers the opportunity to consolidate their ownership and support growth initiatives, at a discounted Issue price; and giving them the flexibility to either sell their rights on the NGX at a premium or maintain their proportional ownership by participating in the rights issue, catering to diverse investment strategies.
Speaking during the Facts Behind the Rights Issue event held at the Nigerian Exchange Group (NGX), Lagos, Dr. Kunle Adedeji, Acting Chief Executive of Stanbic IBTC Holdings PLC, stated, “The pricing of our Rights Issue acknowledges the confidence of our shareholders have in the company’s vision and strategy. We are committed to delivering value to our shareholders and stakeholders, and this Rights Issue is a critical step in achieving our goals.”
According to Dr. Adedeji, “At Stanbic IBTC Holdings, we believe that strong shareholder support is the cornerstone of our growth. The Rights Issue reflects our stakeholders’ trust in our company and reinforces our commitment to delivering sustainable returns. Together, we will navigate the path to success and continue to achieve our strategic objectives.”
The proceeds from the Rights Issue would be largely invested in the company’s banking subsidiary to enable it meet the new minimum capital requirement set by the Central Bank of Nigeria (CBN) for banks and also enhance the company’s funding base and support its growth strategies across its key operations.
Wole Adeniyi, Chief Executive of Stanbic IBTC Bank, who co-presented the Facts Behind the Rights Issue, express delight at the Rights Issue, emphasising the motive behind it. “This is a significant milestone in our journey to becoming Nigeria’s leading financial services organisation and a critical step in our efforts to meet the evolving needs of our customers and stakeholders. We are committed to maintaining our leadership position in the industry, and this capital raise will enable us to invest in our business, drive innovation, and deliver sustainable returns to our shareholders.”
Mr. Adeniyi further added “We are grateful for the support of our shareholders, who have demonstrated their confidence in our ability to deliver long-term value. This rights issue will enable us to build on our strengths, capitalise on new opportunities, and drive growth and profitability in the coming years.”
“This is an exciting time for Stanbic IBTC Holdings PLC and Stanbic IBTC Bank, and we are pleased to have commenced this important capital raise. We are well-positioned to drive growth, innovation, and customer satisfaction, and we look forward to continuing to deliver value to our stakeholders,” Mr. Adeniyi said.
Stanbic IBTC Holdings PLC is a member of the Standard Bank Group, the largest bank by assets in Africa. The company offers various financial services, including corporate and investment banking, personal and private banking, investment and asset management services.