Rights issue: Stanbic IBTC to invest 27% in SMEs, commercial banking
Stanbic IBTC Holdings Plc has announced plans to allocate 27 per cent of the N148.71bn proceeds from its ongoing rights issue to support its business and commercial banking operations.
This move is aimed at facilitating the growth of small and medium-sized enterprises and commercial enterprises, particularly in the general commerce sector.
The acting Chief Executive Officer of Stanbic IBTC Group, Kunle Adedeji, disclosed this during the company’s Facts Behind the Issue presentation at the Nigerian Exchange Group.
He noted that the allocation aligns with the group’s strategy to boost key sectors critical to Nigeria’s economic development.
Adedeji stated, “We are committed to channelling resources to sectors that have the capacity to catalyse sustainable growth. By supporting SMEs and commercial businesses, we aim to foster financial inclusion and economic expansion.”
The rights issue, which comprises 2.94bn ordinary shares priced at N50.50 per share, is offered on the basis of five new ordinary shares for every 22 ordinary shares held by shareholders. Stanbic IBTC plans to use the proceeds to bolster its banking operations, including corporate and investment banking, personal banking, and IT infrastructure upgrades.
The group also revealed plans to invest 42 per cent of the funds in corporate and investment banking to support sectors such as manufacturing, power, agriculture, and telecommunications. Additionally, 14.11 per cent will go towards IT upgrades, while 2.22 per cent will be used to expand its branch network with environmentally friendly and tech-enabled facilities.
Also, Stanbic IBTC’s financial performance for the nine months ended September 2024, including a 95 per cent increase in gross earnings to N650bn and a 67 per cent rise in profit after tax, underscores its ability to deliver shareholder value and drive economic growth.
The CEO of NGX Limited, Jude Chiemeka, has commended Stanbic IBTC Holdings Plc for its N148.71bn rights issue, describing it as a move to strengthen its operations and support economic growth.
“Listed companies are not only better positioned to access capital for growth but also demonstrate higher levels of transparency and tax compliance, which significantly benefits the economy,” Chiemeka said.
He also emphasised the success of businesses across various sectors, including manufacturing, telecommunications, and agriculture, that have utilised the NGX platform to fund operations and remain competitive.
“This reinforces the critical role of the capital market in fostering sustainable economic growth,” he added.
