SEC suspends Stanbic IBTC Holding rights issue

as management says it continues to engage relevant regulatory bodies

The Securities and Exchange Commission (SEC) has suspended Stanbic IBTC Holding plc Rights Issue pending conclusion of ongoing investigation.

Stanbic IBTC Holdings plans to raise about N20.4 billion from existing shareholders in the nation’s capital market.

However, management of Stanbic IBTC Holdings, in a statement Tuesday, said: “The management of Stanbic IBTC will continue to engage with the relevant regulatory bodies to ensure that these enquiries are addressed in a timeous manner. Stanbic IBTC Bank plc, the banking subsidiary of Stanbic IBTC Holdings, remains well capitalised and has sufficient liquidity.”

In an application to the Nigerian Stock Exchange (NSE), the fresh funds was meant to be raised through a Rights Issue of 800 million ordinary shares of 50 kobo each at N25.50 per share.

The Rights Issue was meant to be made on the basis of two new ordinary shares for every 25 ordinary shares held.

Earlier this week, the Financial Reporting Council of Nigeria (FRCN) said it commenced investigations into allegations of financial impropriety made in the financial statements of Stanbic IBTC Bank plc.

Jim Obazee, CEO, FRCN, who stated this shortly after a meeting with Dan-Azumi Ibrahim, director-general, National Office for Technology Acquisition and Promotion, in Abuja, noted that the move was in response to a petition written by shareholders of the bank, drawing the attention of regulatory authorities to some unapproved transactions allegedly conducted by the bank with its foreign technical partners.

Members of Trusted Shareholders Association had in a petition alleged that tens of billions of naira were yet to be returned into the profit and loss account of the bank.

The SEC in a public notice Tuesday said: “This is to inform the investing public (particularly the shareholders of Stanbic IBTC Holding Company Plc) that the proposed rights issue earlier approved by the Commission is hereby put on hold in view of letters received from the National Office for Technology Acquisition and Promotion (NOTAP), the Central Bank of Nigeria (CBN) as well as the Financial Reporting Council (FRC).

“The Securities and Exchange Commission (SEC) has also been notified of an ongoing investigation by the FRC on the financial statements of Stanbic IBTC Holding Plc. In view of these, the rights issue exercise has been suspended until proper resolution of issues raised”.