NGX market capitalisation rises as rights issue listing adds N150.8bn

BY TEMITOPE ADEBAYO

The Nigerian Exchange (NGX) has received a major boost following the listing of 2.945 billion additional ordinary shares from Stanbic IBTC Holdings Plc, contributing N150.8 billion to the bourse’s overall capitalisation.

This development has helped push the total market capitalisation of the Exchange past the N76 trillion mark, reinforcing the positive momentum in Nigeria’s equities market.

The listing follows the successful conclusion of Stanbic IBTC’s oversubscribed rights issue, which recorded a 121.97 per cent subscription rate. Executed at N50.50 per share, the offer was issued on a basis of five new shares for every twenty-two ordinary shares held as of October 29, 2024. The addition raised the company’s total issued shares from 12.957 billion to 15.902 billion ordinary shares of 50 kobo each, further strengthening its representation on the NGX.

The rights issue listing underscores renewed investor appetite in the equities market, and the transaction’s scale reflects confidence in the broader financial system. The injection of N150.8 billion in market value through this single corporate action demonstrates the NGX’s growing depth and ability to support large capital-raising initiatives by listed firms.

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Beyond the capital market impact, proceeds from the rights issue will be strategically deployed across various sectors of the financial group’s operations. A substantial 96.3 per cent will go into its banking subsidiary, targeting areas such as corporate lending, SME support, retail credit access, and IT upgrades, including cybersecurity and modern banking infrastructure. The remainder will support the expansion of eco-friendly branches and improved service delivery channels.

Stanbic IBTC also posted impressive first quarter 2025 financial results, with total income rising by 46.86 per cent to N203.0 billion and pre-tax profit jumping by 85.63 per cent to N116.4 billion. Its earnings per share increased from N3.45 to N6.25, reflecting strong performance and operational efficiency.

This listing and the continued ability of companies to raise capital successfully reinforce the NGX’s role as a key platform for financing growth, while enhancing investor participation and confidence in Nigeria’s capital markets.