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Key investor in Stanbic IBTC Holdings Plc strengthens position

After Stanbic IBTC Holdings Plc submitted its audited financial statement, there have been an increase activities of insiders’ deals as top executives, significant shareholders increase stakes.

Starting from March 16 to April 27, the SIHP has sent at least 10 notifications to the Nigerian Stock Exchange, informing the market there is an insider dealings in its stock.

Its significant shareholders, Stanbic Africa Holdings Limited (SIHL) has ramped up 25 million shares in addition to about 70% stake in the financial service group between March 17 and 18 of the year 2020.

MarketForces Research shows that the deals were consummated before the group released its audited financial statement for 2019.

Analysts said cumulative shares purchased by SIHL was valued at N755.750 million as at the dates of the transactions.

Reports submitted to the NSE shows insiders are dealing strongly in the financial service company’s shares in April.

It is observed that insiders dealing in the Holdings’ stock increased strongly after the release its 2019 results.

Stanbic IBTC had in its audited statement revealed that as at 31 December 2019, no shareholders held more than 5% of the issued share capital of the company SAHL.

SAHL controlled 65.70% of the SIHP as at 2019 year end, with total shares put at 6,901,544,029. In 2018, it shareholding was 65.35%.

Stock performance

With STANBIC as ticker symbol, data on NSE provides that the stock 52-week high was N47, and had bottomed at N23.50

In the last seven trading sessions, the group share price went vertical, albeit at a level commensurate with current market sentiment.

Share price increased from N27.50 to N28.50 after weak macroeconomic condition and ravaging pandemic have knocked off from its opening value in 2020.

Listed on the main board of the Nigerian Stock Exchange, investors currently value Stanbic IBTC Plc at N299.392 billion on 10,504,967358 shares outstanding.

Financials

In its audited financial statement for 2019, the group’s gross earnings increased by 5.15%, profit before tax increased by 3.15% and profit after tax increased by 0.80%.

For 2019, the group reported a profit after tax of N75.053 billion, a marginal increase when compare to N74.440 billion it declared in 2018.

Despite the thinned growth, the management recommended the approval of a final dividend of 200 kobo per share for 2019 against 150 kobo per share in 2018.

Stanbic Plc had paid interim dividend of 100 kobo to a share in 2019, totaled N10.113 billion.

Significant interest

An in-depth search into the group financial statement revealed that, Ifeoma Esiri has significant direct shareholding in the group.

Then, the explanatory note to the audited statement stated that Mr. Yinka Sanni has indirect shareholding amounting to 5,005,466 ordinary shares through the Sanni Family Trust.

Mrs. Esiri has indirect shareholding amounting to 2,666,670 ordinary shares through Ashbert Limited.

This is in addition to her direct shareholding totaled 34,962,375 shares. In March, Mrs. Esiri however dumped 294,278 shares valued at N3.016 million.

In its compliance statement, the group declared that it float is in accordance with the requirement of the NSE free float requirement.

SIHP, the holding company for the entire group was incorporated as a Public Limited Liability Company on 14 March 2012.

The Company was listed on the Floor of The Nigerian Stock Exchange on 23 November 2012, following the delisting of Stanbic IBTC Bank Plc, pursuant to its compliance with the Central Bank of Nigeria’s Regulation on Banking and Ancillary Matters No. 3 of 2010.

Key investor in Stanbic IBTC Holdings Plc strengthens position