Stanbic IBTC launches $95mn rights issue on Nigerian Exchange for gas and energy projects

Stanbic IBTC Holdings has initiated a NGN148.7bn ($95mn) rights issue via the Nigerian Exchange’s NGX Invest platform to fund investments in gas infrastructure and energy transition projects.

The rights issue, which opened on January 15 and closes on February 21, offers existing shareholders the opportunity to subscribe to 2.94bn ordinary shares at NGN50.5 per share. The offer is structured at five new shares for every 22 held as of 29 October 2024. Acting CEO Kunle Adedeji described NGX Invest as an efficient platform for regulatory compliance and enhancing shareholder value.

Proceeds from the offering will be directed towards critical sectors, including liquefied petroleum gas (LPG) and compressed natural gas (CNG) infrastructure, alongside power sector reforms such as divestments in electricity distribution companies. Adedeji added that the company is also exploring opportunities in the debt capital markets and sustainable finance to foster broader economic transformation.

The initiative aligns with Nigeria’s drive for energy diversification and the Central Bank of Nigeria’s recapitalisation mandate for the banking sector.

Jude Chiemeka, CEO of NGX, commended Stanbic IBTC’s use of NGX Invest, stating that it reinforces the platform’s role in delivering innovative solutions for issuers and investors. 

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