Stanbic IBTC Holdings Plc recently concluded a highly successful Rights Issue, significantly exceeding its target and demonstrating strong investor confidence. The offering, which aimed to raise capital through the issuance of new ordinary shares, saw an impressive oversubscription rate of 121.97%, with investors eager to participate in the bank’s growth trajectory. The Rights Issue offered five new shares for every twenty-two held by existing shareholders as of a specified record date. The overwhelming response underscores the market’s positive perception of Stanbic IBTC’s financial strength and future prospects.
The Rights Issue generated substantial interest, attracting 2,773 valid applications for a total of 3,591,645,237 ordinary shares, significantly surpassing the initially offered 2,944,772,083 shares. This translated to an impressive subscription value of approximately N181.38 billion. Following due process, including verification by the Central Bank of Nigeria (CBN), the entire N181.38 billion was cleared, with a negligible discrepancy of N16.83 million attributed to overpayments by receiving agents, which will be subsequently refunded. The CBN’s clearance solidified the validity of the process and confirmed the successful capital raise.
A detailed breakdown of the applications reveals a high level of participation from existing shareholders. A significant majority, 2,665 shareholders, fully exercised their rights, subscribing to 2.49 billion ordinary shares worth N125.70 billion. Within this group, a further distinction can be made between those who simply took up their allotted shares and those who sought additional shares beyond their entitlement. Specifically, 1,086 shareholders accepted their full allotment worth N119.05 billion, while 1,579 shareholders accepted their initial allocation of N6.65 billion and requested an additional 954.10 million shares worth N48.18 billion, bringing their total application value to N54.83 billion. This proactive pursuit of additional shares highlights the strong conviction these shareholders have in Stanbic IBTC’s growth potential.
Beyond the shareholders who fully subscribed, a smaller group of 29 shareholders partially exercised their rights, accepting only a portion of their allocated shares and renouncing the remainder. This resulted in 24.25 million shares being made available for other investors. Furthermore, active trading of rights on the Nigerian Exchange Limited (NGX) during the acceptance period generated additional applications for 127.80 million shares worth N6.45 billion. These traded rights further broadened participation in the offering and provided liquidity for shareholders who opted not to exercise their rights directly.
The process of allocating the excess demand involved prioritizing the 1,579 shareholders who had requested additional shares over their initial entitlement. These shareholders were allotted the renounced shares on a pro-rata basis. A total of 307.22 million shares were renounced, representing the combined total of shares renounced by both the 29 partially subscribing shareholders and those traded on the NGX. This available pool of shares was distributed among the applicants seeking additional shares at an allotment rate of 32.20%. This approach ensured equitable distribution of the excess shares based on the level of demand.
As a result of the overwhelming demand and the structured allocation process, not all requests for additional shares could be fully satisfied. Specifically, 646.87 million shares requested by shareholders remained unallotted. The corresponding funds amounting to N32.67 billion will be refunded to the affected shareholders. Despite this partial fulfillment of additional requests, the overarching success of the Rights Issue is undeniable, with a 100% allotment of the initially offered shares and substantial oversubscription demonstrating strong investor confidence in Stanbic IBTC. The successful completion of this capital raising exercise positions the bank for future growth and strengthens its financial standing.
