By Ayomide Otitoju
Stanbic IBTC Holdings Plc has announced that 27% of the N148.71 billion proceeds from its ongoing rights issue will be dedicated to supporting its business and commercial banking operations. This strategic move is designed to drive the growth of small and medium-sized enterprises (SMEs) and commercial businesses, particularly in the general commerce sector.
Kunle Adedeji, acting Chief Executive Officer of Stanbic IBTC Group, disclosed the allocation during the company’s Facts Behind the Issue presentation at the Nigerian Exchange Group. He emphasized that the decision aligns with the group’s broader strategy to boost sectors critical to Nigeria’s economic development.
“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,” Adedeji said.
The rights issue, which involves the offer of 2.94 billion ordinary shares at N50.50 per share, is being made on the basis of five new shares for every 22 existing shares held by shareholders. The proceeds will be used to strengthen Stanbic IBTC’s banking operations, including corporate and investment banking, personal banking, and IT infrastructure upgrades.
A significant 42% of the funds will be directed to corporate and investment banking to support key sectors such as manufacturing, power, agriculture, and telecommunications. Additionally, 14.11% will be invested in IT upgrades, while 2.22% will go towards expanding the group’s branch network with environmentally friendly and tech-enabled facilities.
For the nine months ended September 2024, Stanbic IBTC reported a 95% increase in gross earnings to N650 billion, alongside a 67% rise in profit after tax, reflecting the company’s strong financial performance and ability to create value for shareholders.
Jude Chiemeka, CEO of NGX Limited, praised Stanbic IBTC for its N148.71 billion rights issue, noting that it reinforces the company’s efforts 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 highlighted the success of businesses across sectors like manufacturing, telecommunications, and agriculture that have leveraged the NGX platform to fund operations and maintain competitiveness.
“This underscores the vital role of the capital market in driving sustainable economic growth,” he added.
