Stanbic IBTC Holdings Plc has successfully listed 2,944,772,083 additional ordinary shares of 50 Kobo each on the Nigerian Exchange Limited (NGX), following the conclusion of its recently completed rights issue. The new shares were added to the NGX’s Daily Official List after receiving approval, thereby increasing the company’s total issued shares significantly.
According to a bulletin published by NGX Regulation, the new shares were listed after the rights issue exercise, which offered shareholders the opportunity to buy more shares at ₦50.50 per unit, based on a ratio of five new shares for every twenty-two ordinary shares held as of the close of business on October 29, 2024.
With this development, Stanbic IBTC’s total issued and fully paid-up ordinary shares have increased from 12,956,997,163 to 15,901,769,246, marking a significant expansion in the bank’s capital base.
Earlier reports confirmed that the rights issue was oversubscribed by 121.97 per cent, indicating strong investor confidence in the company’s future growth and financial performance. The offer was launched in line with the terms outlined in the Rights Circular dated January 9, 2025.
This capital raise forms part of Stanbic IBTC’s strategic plan to boost its financial strength and support its long-term business goals, including expansion, technology upgrades, and enhanced service delivery across its financial services subsidiaries.
The rights issue was targeted at existing shareholders, giving them the first opportunity to buy the new shares based on their existing holdings. Such capital market activities are typically used by listed companies to raise fresh equity capital while ensuring minimal dilution for long-term shareholders.
The listing of the new shares follows the conclusion of regulatory processes and aligns with the exchange’s listing requirements. The NGX has since updated its Daily Official List to reflect the new total for Stanbic IBTC Holdings Plc.
The rights issue and subsequent listing come at a time when the Nigerian capital market is seeing increased activity from financial institutions and infrastructure firms seeking to bolster their capital in the face of rising macroeconomic challenges, inflationary pressure, and regulatory reforms.
Stanbic IBTC Holdings Plc, a member of the Standard Bank Group, is one of Nigeria’s leading financial services institutions. The group offers a wide range of services including banking, asset management, pension fund administration, stockbroking, insurance, and investment banking.
In recent years, the company has continued to invest in digital banking, financial inclusion, and market expansion. The oversubscription of its rights issue reflects strong investor confidence in the group’s strategic direction, earnings potential, and market leadership.
The Nigerian Exchange has also been encouraging more corporate listings and capital raising efforts as part of its broader strategy to deepen the capital market and offer investors more opportunities for portfolio diversification.
Market analysts say the strong investor response to Stanbic IBTC’s offer could also signal a renewed appetite for equity investments among local and institutional investors, especially in banking stocks with strong fundamentals and dividend history.
As more companies move to strengthen their capital positions in response to Nigeria’s evolving regulatory and economic environment, capital market instruments like rights issues, public offers, and bonds are expected to play a greater role in funding long-term growth.
