Stanbic IBTC drives NGX market capitalisation with N150.8bn rights issue listing

1 minute read

Kunle Adedeji e1751282178731 — AActing chief executive officer, Stanbic IBTC Group, Kunle Adedeji

Stanbic IBTC Holdings Plc has listed 2.945 billion additional ordinary shares on the Nigerian Exchange Limited (NGX), expanding its equity base.

The listing follows the conclusion of the Holding Company’s rights issue, which was oversubscribed at 121.97 per cent. The new shares were executed at a price of N50.50 per share, based on five new shares for every twenty-two ordinary shares held as of October 29, 2024.

This development has increased the total issued and fully paid-up shares of Stanbic IBTC Holdings from 12.957 billion to 15.902 billion ordinary shares of 50 kobo each.

The listing has contributed to the Nigerian Exchange’s growth, with the market capitalization crossing the N76 trillion mark. Stanbic IBTC’s market capitalization has also seen significant growth, reaching N1.38 trillion, positioning it as one of Nigeria’s most valuable banks.

The acting chief executive officer, Stanbic IBTC Group, Kunle Adedeji recently said, while 96.3 per cent of the rights issue proceeds would be deployed into the banking subsidiary, 42 per cent would target the Corporate and Investment Banking (CIB) to boost counter-cyclical sectors such as manufacturing, power, agriculture, and telecommunications.

He said, 27 per cent of the proceed would be allocated to its Business and Commercial Banking (BCB) to support SMEs and commercial enterprises, especially in general commerce while 11 per cent would be utilised for Personal and Private Banking (PPB) to improve credit access for individuals and enhance financial inclusion.

He added that the bank also intend to invest 14.11 of the proceed in IT infrastructure upgrade, including modernising cyber and information security systems to enhance operational resilience and customer experience, saying, additionally, 2.22 per cent will fund the expansion of its distribution network, with a focus on establishing eco-friendly and technologically advanced branches.

Stanbic IBTC Holdings in its unaudited financial results for the first quarter of 2025, reporting a significant increase in total income and pre-tax profit. The company’s total income reached N203.0 billion, compared to N138.2 billion in the same period of 2024, representing a 46.86 per cent year-on-year increase. Profit before tax for the period was N116.4 billion, a year-on-year growth of 85.63 per cent. This resulted in basic earnings per share of N6.25, up from N3.45 the previous year.