Stanbic IBTC has notified the Nigerian Stock Exchange that its Chief Executive, Dr. Demola Sogunle, has acquired 970,000 additional units of Stanbic IBTC Holdings Plc shares.
In line with the Nigerian Stock Exchange policy on insider dealing, the formal disclosure was made by the Company Secretary of the bank, Mr. Chidi Okezie.
According to the disclosure, Demola Sogunle purchased 970,000 additional units of the company’s shares at N46 per units today, the 6th of November, 2020.
This put the consideration for the additional shares bought by Dr. Sogunle at ₦44.62 million.
In a similar disclosure by the Company Secretary, Stanbic Bank’s Head of Clients Coverage, Mr. Olu Delano, acquired 1,000,000 additional units of shares of the bank in a single transaction worth ₦46 million yesterday, the 5th of November.
The total consideration for the additional shares purchased by Dr. Demola Sogunle and Mr. Olu Delano is put at ₦90.6 million.
Stanbic IBTC’s shares currently trade at N46 per share, which is 95.74% higher than its 52-week low of N23.50.
Shares of banks are on a bullish run as investors channel billions of naira into acquiring shares in significantly undervalued stocks. This has edged the shares of the bank to a 52-week high of N46.50.
Why this matters
Dealings by insiders of listed companies are corporate actions to be disclosed, as required by the Nigerian Stock Exchange.
Reporting the trade is part of the transparency required by the Exchange and compliance of the bank.
Trade by insiders, particularly purchases, often demonstrates confidence in the financial performance of the companies that they run.