Stanbic IBTC Launches ₦148.7 Billion Rights Issue to Bolster Capital Base

 

By journalist Cabal News 

 

Stanbic IBTC Holdings PLC, a part of the Standard Bank Group, has officially opened its ₦148.7 billion Rights Issue. This Rights Issue, which commenced on January 15, 2025, and will conclude on February 21, 2025, gives existing shareholders the chance to subscribe to 2,944,772,083 Ordinary Shares of 50 kobo each at ₦50.50 per share.

 

The structure of the Rights Issue is based on a ratio of 5 new shares for every 22 Ordinary Shares held as of October 29, 2024.

 

This strategic initiative aims to bolster the company’s capital base, improve its funding capacity, and position it for sustainable growth. It will enable the banking subsidiary to comply with the new minimum capital requirement set by the Central Bank of Nigeria (CBN), thereby enhancing regulatory compliance and potentially improving its Capital Adequacy Ratio (CAR).

 

For existing shareholders, the Rights Issue provides an opportunity to strengthen their ownership and support growth initiatives at a discounted issue price. It offers flexibility, allowing shareholders to either sell their rights on the NGX at a premium or maintain their proportional ownership by participating in the Rights Issue, catering to different investment strategies.

 

During the Facts Behind the Rights Issue event held at the Nigerian Exchange Group (NGX) in Lagos, Dr. Kunle Adedeji, Acting Chief Executive of Stanbic IBTC Holdings PLC, remarked, “The pricing of our Rights Issue reflects the confidence our shareholders have in the company’s vision and strategy.

 

We are dedicated to delivering value to our shareholders and stakeholders, and this Rights Issue is a crucial step in achieving our objectives.”

 

Dr. Adedeji continued, “At Stanbic IBTC Holdings, we believe that strong shareholder support is fundamental to our growth. The Rights Issue demonstrates our stakeholders’ trust in our company and reinforces our commitment to providing sustainable returns. Together, we will navigate the path to success and continue to achieve our strategic goals.”

 

The funds raised from the Rights Issue will be primarily invested in the company’s banking subsidiary to meet the new minimum capital requirement set by the CBN for banks, enhance the company’s funding base, and support its growth strategies across key operations.

 

Wole Adeniyi, Chief Executive of Stanbic IBTC Bank, who co-presented the Facts Behind the Rights Issue, expressed enthusiasm about the Rights Issue and emphasized its purpose.

 

“This is a significant milestone in our journey to becoming Nigeria’s leading financial services organization and a critical step in meeting 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 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, seize new opportunities, and drive growth and profitability in the years ahead.”

 

“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 a range of financial services, including corporate and investment banking, personal and private banking, and investment and asset management services.