Stanbic IBTC Eyes CNG, LNG Infrastructure from N148.7bn Rights Issue

Speaking at The Facts Behind the Rights Issue event at the Nigerian Exchange (NGX) Limited last week, the acting chief executive of Stanbic IBTC Holdings, Mr Kunle Adedeji, said funds raised from the exercise would drive growth in critical sectors such as oil and gas, with a focus on Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and gas infrastructure.

He added that proceeds would also support power sector reforms, including exploring opportunities in the debt capital market and sustainable finance to foster economic transformation.

Mr Adedeji noted that the company intends to divest in distribution companies (Discos) despite the firm joining a consortium known as Transgrid to acquire a 60 per cent stake in Eko Electricity Distribution Company (EKEDC).

The rights issue was launched on the NGX’s e-offering platform, NGX Invest, and has been open since January 15 and will close on February 21, 2025.

Mr Adedeji acknowledged NGX Invest as an essential tool in facilitating the rights issue, echoing that it platform designed to streamline capital raising and enhance investor participation.

He noted that the platform would enable Stanbic IBTC to distribute its rights issues efficiently while meeting regulatory requirements and delivering value to its shareholders.

He expressed deep appreciation for the confidence shown by shareholders, emphasizing the strategic importance of the rights issue.

Nigeria’s energy sector has been one of the most profitable sectors in the last few years with policies including the Petroleum Industry Act (PIA) of 2021 and the elimination of fuel subsidies making it an attractive sector.

The Stanbic IBTC rights issue allows existing shareholders to subscribe to 2,944,772,083 ordinary shares of 50 Kobo each at N50.50 per share, structured as 5 new shares for every twenty-two (22) ordinary shares held as of October 29, 2024. Qualified investors can seamlessly take up their rights via the platform at https://invest.ngxgroup.com

Speaking on the significance of NGX Invest, Mr Jude Chiemeka, the Chief Executive Officer of Nigerian Exchange Limited (NGX), remarked, “The success of NGX Invest as a capital-raising platform reinforces our commitment to providing innovative solutions for issuers and investors alike.

“Stanbic IBTC’s confidence in our infrastructure reflects the opportunities we continue to create for sustainable growth in Nigeria’s financial markets.”