Stanbic IBTC Holdings Plc has announced the successful completion of its Rights Issue of 2.94 billion ordinary shares, which recorded a staggering 121.97 per cent oversubscription, translating to N181.39 billion raised. The development underscores robust investor faith in the bank’s long-term strategy and stability.
The Rights Issue offered existing shareholders five new ordinary shares for every twenty-two ordinary shares held, as of October 29, 2024. The shares were priced at N50.50 per unit, according to the Rights Circular released on January 9, 2025. The Acceptance List closed on February 21, 2025.
The offer received 2,773 valid applications for 3.59 billion shares, well above the initial offer of 2.94 billion units, indicating strong investor appetite despite prevailing economic uncertainties in the Nigerian financial sector.
Out of the total 2,773 applicants, 2,665 shareholders with provisional allotments of 2.49 billion shares, valued at approximately N125.7 billion, fully subscribed to their rights. Within this group:
1,086 shareholders accepted rights worth N119.05 billion.
1,579 shareholders accepted N6.65 billion in provisional shares and also applied for additional 954.10 million shares valued at N48.18 billion.
Additionally, 79 applications for 127.80 million shares worth N6.45 billion were received via traded rights on the Nigerian Exchange (NGX), while 29 shareholders with allotments of 44.95 million shares partially took up 20.70 million units, renouncing 24.25 million shares.
The offer recorded an overall renunciation of 307.22 million shares, which were redistributed to shareholders who applied for additional shares. However, only 32.20 per cent of the additional shares requested were allotted on a pro-rata basis due to oversubscription, resulting in 646.87 million units remaining unallotted.
Stanbic IBTC disclosed that N32.67 billion in excess funds from the unallotted additional shares would be refunded to affected shareholders in accordance with regulatory guidelines and best practices.
Importantly, no application was rejected, indicating thorough compliance and investor engagement throughout the offer process.
All valid applications were processed and submitted to the Central Bank of Nigeria (CBN) for its Capital Verification Exercise, with the apex bank clearing N181.39 billion, slightly higher than the accepted value due to overpayments of N16.83 million by some receiving agents, which will be refunded accordingly.
The successful rights issue positions Stanbic IBTC to strengthen its capital base, expand retail and digital banking operations, and support Nigeria’s real sector growth, aligning with the Central Bank’s recapitalisation drive.
The market has responded positively to the development, with analysts describing the oversubscription as a vote of confidence in the bank’s governance structure, asset quality, and long-term profitability outlook.
The conclusion of Stanbic IBTC’s Rights Issue comes at a time when financial institutions are bracing for tighter capital requirements under regulatory pressure. The oversubscription not only validates the bank’s strategy but could also set the tone for similar capital raising by other top-tier banks ahead of recapitalisation mandates.
In a capital market often marred by volatility and investor skepticism, Stanbic IBTC’s ability to attract over N181 billion in fresh equity is seen as a pivotal moment for the banking sector and an encouraging sign for the broader Nigerian investment landscape.