Will Atedo Peterside’s insider dealing help Stanbic IBTC amid N65.43bn loss?

Atedo Peterside, through his investment firm, SITL The First ANAP Domestic Trust, has conducted an insider dealing to tighten his position in Stanbic IBTC – but this could mean more for the Nigerian lender.

ANAP Trust acquired 6.16 million ordinary shares in two tranches on November 1 and 2, 2021, with the first being a 4,166,667 shares, while the second is 2,000,000 – each share was purchased at N39.

The share acquisitions cost the investment vehicle N240.50 million, and took ANAP Trust’s total shares in Stanbic IBTC to 131,166,667, while his total investment in the lender rose to N5.11 billion.

This cements Peterside‘s ANAP Trust control of 1.13 percent in Stanbic IBTC, where it is currently the second majority shareholder behind Stanbic Africa Holdings Limited (SAHL).

SAHL holds 7,443,450,299 shares in the lender, controlling 67.02 percent of Stanbic IBTC as of December 31, 2020.

Will Peterside’s insider dealing save Stanbic IBTC like Femi Otedola at First Bank?

Peterside’s share transaction comes at a time the company’s stock has been trading flat at N39 per share since the start of Q3 this year, having fallen 8.62 percent in H1 [losing N3.8kobo along the way], and 3.10 percent in H2-to-date, according to Ripples Nigeria analysis.

READ ALSO: Stanbic IBTC founder, Atedo Peterside, criticises Buhari’s decision to repair PH refinery

The stock value has crashed from N44.05 per share to N39 year-to-date, as investors confidence in Stanbic IBTC has been low, with negative sentiment hovering around the lender in the capital market.

This shows investors have been pricing the Stanbic IBTC low, which has resulted to a loss of N65.43 billion for the lender’s shareholders, as total investment dwindled from N570.75 billion to N505.32 billion year-to-date.

Insider trading is often seen as a map for minority stakeholders or prospective investors to make a decision towards a company’s stock.

Share purchase by an insider, especially a substantial shareholder, signify to the capital market that a majority stakeholder see an impending positive growth in the market, but when the insider sells off, it shows the market is probably heading for a downward path.

Its yet to be seen how the market will react to Peterside’s presence, as First Bank shareholders and prospective investors benefited from Femi Otedola’s share acquisition in H2 2021, taking its stock value up 50 percent in two weeks, higher than what it recorded in nine months.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now