Sterling HoldCo gets shareholder approval to raise $400m in fresh capital

Shareholders of Sterling Financial Holdings Company Plc have approved plans to raise $400 million in fresh capital and undertake a major share reconstruction exercise as the financial services group positions itself for future growth and regulatory requirements.

The resolutions were passed at the company’s 3rd Annual General Meeting (AGM) held virtually on June 9, 2026, according to a notice signed by Sunny Kanabe, the company’s secretary, published on the Nigerian Exchange Group (NGX)

Under the approved resolutions, Sterling HoldCo will be authorised to raise up to $400 million or its equivalent in naira or other currencies through a range of instruments, including ordinary shares, preference shares, bonds, global depositary receipts, or a combination of these securities in both local and international capital markets.

The capital raise may be executed through public offers, private placements, rights issues, or other methods, subject to regulatory approvals.

Shareholders also approved a significant restructuring of the company’s share capital through a 10-for-1 share consolidation and capital reduction aimed at optimizing the company’s capital structure. The move will see the company’s 68.5 billion ordinary shares consolidated into approximately 6.85 billion shares.

“As part of the restructuring, shareholders approved the cancellation of about 61.65 billion ordinary shares, reducing the company’s issued share capital to N3.43 billion, comprising 6.85 billion ordinary shares of 50 kobo each, subject to confirmation by the Federal High Court. The amount resulting from the reduction will be transferred into a share reconstruction reserve account,” it said.

The board was further authorised to take all necessary steps, including seeking court approval, filing regulatory documents, appointing advisers, and implementing the capital restructuring process.

At the AGM, shareholders also approved the group’s audited financial statements for the year ended December 31, 2025, and re-elected Aisha Bashir and Abubakar Suleiman as directors retiring by rotation.

In its 2025 full-year interim financial statement, Sterling HoldCo’s gross earnings stood at N476.5 billion in 2025, about a 46 percent increase from N326.82 billion in 2024, driven by healthy growth in both interest and non-interest income. Interest income increased by 43 percent to N369.6 billion, driven by a rise in loans and advances and higher yields on investment securities.

Non-interest income grew by 57.3percent, supported by higher trading income and growth in fees and commissions.

The Group’s total assets surged to N3.92 trillion in 2025, representing a 14 per cent increase from N3.54 trillion in 2024, a strong indicator of its expanded market footprint.

Customer deposits reached N2.98 trillion in 2025, an increase of 18per cent to further reflect the Group’s successful efforts in enhancing customer engagement and product adoption across its platforms.

As of Wednesday, June 16, the holding company stock closed at N7.80 per share on the NGX, recording a 3.3 percent gain over its previous closing price of N7.55. Sterling began the year with a share price of N7.05 and has since gained 10.6 percent on that price valuation, ranking it 85th on the NGX in terms of year-to-date performance.