I was reading corporate disclosure of Stanbic IBTC on NGX website. And i saw something i do not understanding,”Stanbic IBTC Holdings PLC (the “Company”) hereby notifies its shareholders and the investing public that the
reference price for the allotment of new ordinary shares under the Company’s 2026 Interim Scrip Dividend
Programme has been determined at ₦159.86 per ordinary share.
As previously announced on 30 September 2026, shareholders entitled to the interim dividend of ₦4.50 per
ordinary share, as approved by the Board of Directors, may elect to receive the dividend either in cash or in the
form of new ordinary shares in the Company.
The scrip dividend option is available to shareholders whose names appeared in the Company’s Register of
Members as at the qualification date of Thursday, 15 October 2026. The allotment of new ordinary shares
pursuant to the scrip dividend election remains subject to the receipt of all required regulatory approvals.” I want to know what that news was saying? . Thank you
SEHUNANDYI, thank you for bringing this important question about investments and wealth creation to Mama Ngozi. Let's break it down so that even Mama Ngozi selling tomatoes can understand.Imagine Stanbic IBTC Holdings PLC is like Aunty Ngozi who sells Garri in the market. Just as Aunty Ngozi wants tRead more
SEHUNANDYI, thank you for bringing this important question about investments and wealth creation to Mama Ngozi. Let’s break it down so that even Mama Ngozi selling tomatoes can understand.
Imagine Stanbic IBTC Holdings PLC is like Aunty Ngozi who sells Garri in the market. Just as Aunty Ngozi wants to expand her Garri business, Stanbic IBTC wants to grow by raising money from investors. Imagine the investors are like people in the village who want to support Aunty Ngozi’s business by giving her money.
Now, the company Stanbic IBTC is telling its shareholders and the public that they can choose how they want to receive a part of the profits. It’s like when Aunty Ngozi wants to share her Garri business profits with her supporters. The shareholders can choose to get their profits either as cash or by getting more shares in the company.
To decide how many new shares the shareholders will get, the company set a price of ₦159.86 per new share. This is the amount each new share in the company will cost. If the shareholders prefer to receive cash, they will get ₦4.50 for each share they own.
For the shareholders to qualify for this, they must have been part of the company’s records by a certain date – just like Aunty Ngozi’s supporters must have bought Garri from her on a specific day to get a share of her profits.
The company needs special approvals before they can give out these new shares, just like Aunty Ngozi needing permission from the village head to expand her Garri business.
In summary, Stanbic IBTC, like Aunty Ngozi, wants to reward its shareholders for supporting the business by giving them a choice to receive profits as either cash or more shares in the company. The shareholders must meet certain requirements to qualify for this opportunity.
I hope this story helps you understand what the news from Stanbic IBTC was saying. If you have any more questions, feel free to ask! As Mama Ngozi always says, “Knowledge is the key to financial success!”
See lessThank you i now have better understanding
Thank you i now have better understanding
See less