Sterling Financial Holdings Company PLC has announced a significant milestone in its recapitalisation journey, with the Central Bank of Nigeria (CBN) approving an additional ₦75 billion in its capital raise.
This approval represents the final leg of the capital injection that was achieved through a private placement in September 2024.
The private placement, which was highly successful, was followed by a Rights Issue in October 2024.
The Rights Issue was structured to provide existing shareholders with the exclusive opportunity to deepen their stakes in the company and share in its growth story.
The Rights Issue received significant interest and participation, highlighting the confidence and trust that the company has cultivated among its shareholders over the years.
Regulatory approval for the process is currently underway, marking another significant step in the recapitalisation journey.
The public is eagerly awaiting Sterling’s Public Offer, which will present an exciting opportunity for individuals to invest in the company.
It is anticipated that the recapitalisation process will be completed with a Public Offer early next year, allowing wider participation from the public and further strengthening its commitment to shared value creation.
Group Chief Executive, Yemi Odubiyi, described the capital injection and the approval as a validation of the company’s strategic direction and operational excellence.
“This milestone reflects the confidence of regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond,” he stated.
“Our enhanced capital base empowers us to pursue transformative opportunities, deliver sustainable value to all stakeholders, and drive impact across critical sectors of the Nigerian economy.”
Odubiyi emphasized the company’s evolution from its origins as a merchant bank to its current status as a diversified financial holdings company.
Powered by cutting-edge technology and a flexible operational model, the company has consistently demonstrated its ability to navigate market difficulties and seize growth opportunities.
Reflecting on Sterling’s accomplishments, Odubiyi acknowledged the instrumental role of stakeholders, including regulators, investors, and customers.
“We are grateful for the unwavering support and trust in our strategy, which has been pivotal to our journey,” he added. “This recapitalisation strengthens our ability to unlock new opportunities, create value, and drive economic growth.”
The capital boost follows a year marked by robust financial performance and significant strategic achievements for Sterling.
As at the last week in December 2024, Sterling witnessed a 19% surge in stock price, contributing to a remarkable three-year growth of 287.42%.
In the first half of 2024, the company recorded a 51% increase in profit before tax compared to the same period in 2023 and achieved a 20% growth in total assets.
These results demonstrate Sterling’s resilience and ability to deliver superior outcomes despite the complexities of Nigeria’s economic landscape, marked by high inflation and currency volatility.
With a fortified capital structure, the company is well-positioned to execute its ambitious growth plans, deepen its impact across critical sectors, and set new benchmarks for excellence in Nigeria’s financial services industry.
This latest milestone marks a transformative chapter for Sterling Financial Holdings Company PLC as it continues to redefine the future of financial services in Nigeria and beyond.
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