Stanbic IBTC to raise N148.7bn through rights issue to invest in CNG, LPG

Stanbic IBTC Holdings Plc has launched N148.7 billion rights issue on NGX Invest, the electronic offering platform of the Nigerian Exchange Limited (NGX).

Kunle Adedeji, acting chief executive officer (CEO) of Stanbic IBTC Holdings, spoke during the ‘Facts behind the rights issue presentation by Stanbic IBTC’on Tuesday in Lagos.

The rights issue, which opened on January 15 and will close on February 21, allows existing shareholders to subscribe to 2,944,772,083 ordinary shares at N50.5 per share.

Stanbic IBTC said the shares are structured as five new shares for every 22 ordinary shares held as of October 29, 2024.

Adedeji acknowledged NGX Invest as an essential tool for facilitating the rights issue.

He said the platform would allow Stanbic IBTC to distribute its rights issues efficiently, meet regulatory requirements, and deliver value to its shareholders.

The acting CEO emphasised that the funds raised from the exercise would be channelled towards driving growth in critical sectors such as oil and gas, with a focus on liquefied petroleum gas (LPG), compressed natural gas (CNG), and gas infrastructure.

Adedeji said the proceeds would support power sector reforms, especially divestments in the electricity distribution companies (DisCos).

He said Stanbic IBTC intends to explore opportunities in the debt capital market and sustainable finance to drive economic transformation.

In July 2024, the NGX unveiled NGX Invest to streamline public offerings and rights issues in the capital market.

The company said the platform comes at a crucial time, coinciding with the Central Bank of Nigeria‘s (CBN) banking recapitalisation directive.

On his part, Jude Chiemeka, NGX’s chief executive officer (CEO), said the success of NGX Invest as a capital-raising platform reinforced the exchange’s commitment to offering innovative solutions for issuers and investors.

The CEO said qualified investors could seamlessly take up their rights via the platform.

Chiemeka added that Stanbic IBTC’s confidence in NGX’s infrastructure reflects the opportunities NGX continues to create for sustainable growth in Nigeria’s financial markets.