Stanbic IBTC shops for N148.7bn from existing shareholders

…as race for recapitalisation intensifies

Stanbic IBTC Holdings Plc is currently in the market for its N148.7 billion rights issue which opened on Wednesday January 15 and scheduled to close on Friday, February 21, 2025.

The company is offering existing shareholders 2,944,772,083 ordinary shares of 50 kobo each at N50.50 per share. The Rights Issue is based on 5 new issue shares for every 22 ordinary shares held as of the close of business on Tuesday, October 29, 2024.

The N59.5 per share which Stanbic IBTC trades nears its 52-week high of N65.4 percent as against a 52-week low of N45.

Stanbic IBTC Holdings is a financial service holding company in Nigeria with subsidiaries in Banking, Stock Brokerage, Investment Advisory, Asset Management, Investor Services, Pension Management, Trustees, Insurance Brokerage and life Insurance businesses.

Read also: What to know as Stanbic IBTC gets approval for N150bn Rights Issue

The Central Bank of Nigeria (CBN) on March 28, 2024 published revised minimum capital requirements for commercial, merchant and non-interest banks in Nigeria, including a minimum capital requirement of N500 billion for commercial banks with international authorisation, with a capitalisation deadline of March 31, 2026.

The stockbrokers for the Rights Issue are Stanbic IBTC Stockbrokers Limited, FBNQuest Securities Limited, Greenwich Securities Limited, Meristem Stockbrokers Limited, and RenCap Securities (Nigeria) Limited.

Also, the Issuing House(s)/Financial Adviser(s) for the Rights Issue of Stanbic IBTC Holdings are: Rand Merchant Bank Nigeria Limited, Stanbic IBTC Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Quantum Zenith Capital & Investments Limited, United Capital Plc, and FSDH Capital Limited.

In its unaudited consolidated and separate interim financial statements for the nine months to (9M) to September 30, 2024, Stanbic IBTC Holdings Plc reported gross earnings of N649.531billion as against N331.624billion in 9M’2023, representing 95.9 percent increase.

Profit Before Tax (PBT) also closed high at N222.931billion from N129.458 in 9M’23, up 72.2 percent, while Profit After Tax (PAT) of N182.871billion in 9M’24 represents an increase by 67.4 percent, from N109.249 billion in 9M’23.

On Tuesday January 21, Stanbic IBTC Holdings Plc will hold its “Facts Behind the Rights Issue” presentation at the Nigerian Exchange Limited (NGX).

During this session, the executive management team will share valuable insights into the company’s strategic vision, core business strategies, and the expected impact of the rights issue on its operations and growth trajectory.