The board of directors of Stanbic IBTC Holdings Plc. has announced that the holding company could issue up to 211.7 million ordinary shares of 50 kobo each as scrip dividend shares if shareholders opt to receive their first-half interim dividend in shares.
Stanbic IBTC Holdings had mid last month announced an interim dividend of N10.11 billion for the first half of 2018, representing interim dividend per share of N1, 66.7 percent above 60 kobo paid for the corresponding period of 2017.
Under a resolution passed at its extraordinary general meeting in August 2016, shareholders of Stanbic IBTC Holdings may choose to receive dividends declared by the company, up to year 2020, either in cash or as new ordinary shares in the company.
In a regulatory filing at the Nigerian Stock Exchange (NSE), the board of the holding group indicated that the reference price to be used for the conversion of the cash-to-scrip shares option would be N47.75 per share, implying a total of 211.7 million shares for the N10.11 billion cash dividend.
Under the conversion programme, the reference price to be used in determining any scrip dividend allotment shall be the volume weighted average price (VWAP) of the company’s shares on the NSE for the five business days commencing on the day the ordinary shares are first quoted ex-dividend.
The qualification date for the interim dividend was August 28, 2018, while the payment date for the dividend is September 26, 2018. Where a shareholder elects to receive the whole or a part of his dividends by way of new ordinary shares, such scrip shares shall only be allotted after receipt of any required regulatory.
In order to be valid, any scrip dividend election by shareholders must be made to the company’s Registrars, not later than seven days prior to any dividend payment date, implying that all completed forms for shares dividend option must reach the Registrars on or before the close of business on Wednesday, September 19, 2018.