Sterling Financial Holdings Company PLC has reached a significant milestone in its recapitalisation journey, securing approval from the Central Bank of Nigeria (CBN) for an additional 75 billion in its capital raise. This marks the final phase of the company’s ambitious capital injection plan, which has progressed successfully through various stages in 2024.
The capital raise began with a highly successful private placement in September 2024, followed by a Rights Issue in October. The Rights Issue offered existing shareholders an exclusive opportunity to increase their stakes and align with the company’s growth trajectory. The overwhelming participation and interest in the Rights Issue underscored the trust and confidence Sterling has built among its shareholders over the years.
Regulatory approvals for the Rights Issue are currently underway, paving the way for the next step in the recapitalisation process—a Public Offer. Expected to launch in early 2025, the Public Offer will provide a broader spectrum of investors with an opportunity to participate in Sterling’s growth story and further solidify the company’s commitment to shared value creation.
Group Chief Executive Yemi Odubiyi described the CBN approval and the capital injection as a testament to Sterling’s strategic vision and operational strength.
“This milestone reflects the confidence of regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond,” he said. “With an enhanced capital base, we are positioned to pursue transformative opportunities, deliver sustainable value, and drive impact across critical sectors of the Nigerian economy.”
Odubiyi highlighted Sterling’s evolution from a merchant bank to a diversified financial holdings company powered by innovative technology and a flexible operational model. He noted that this adaptability has enabled the company to overcome market challenges and seize opportunities for growth.
Reflecting on the journey, Odubiyi acknowledged the vital support of stakeholders, including regulators, investors, and customers. “Their unwavering trust in our strategy has been pivotal to our success,” he stated. “This recapitalisation strengthens our ability to unlock new opportunities, create value, and contribute to economic growth.”
Sterling’s recapitalisation milestone follows a year of robust financial performance and strategic achievements. By the last week of December 2024, the company’s stock price had surged by 19%, capping a remarkable three-year growth of 287.42%. In the first half of 2024, Sterling reported a 51% increase in profit before tax compared to the same period in 2023, alongside a 20% growth in total assets.
These results highlight Sterling’s resilience in navigating Nigeria’s challenging economic landscape, characterised by high inflation and currency volatility. With its strengthened capital base, the company is poised to execute ambitious growth plans, deepen its impact in critical sectors, and set new benchmarks for excellence in Nigeria’s financial services industry.
This 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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