Sterling HoldCo begins allotment for 12.58bn shares after regulatory approval

Sterling Financial Holdings Company Plc has commenced the allotment of shares under its 2025 public offer of 12,581,000,000 ordinary shares of 50 kobo each priced at N7.00 per share, after securing approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

The offer, which opened on September 15, 2025, drew 18,280 applications for 16,839,524,401 shares valued at about N117.88 billion. After verification, 18,276 applications were confirmed valid for 13,812,239,000 shares, representing a subscription level of 109.79 percent. 

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In a statement seen by BusinessDay, the company stated that all valid applications will be allotted in full, while a small number were rejected or adjusted for issues such as duplicate payments or failure to meet the minimum subscription requirement of 1,000 units or its multiples.

The public offer is part of a capital-raising plan intended to support lending, product development, and financing for businesses and households. The group also plans to inject ₦10 billion into SterlingFI Wealth Management Limited to meet revised minimum capital requirements for capital market operators issued by the SEC in January 2026. The investment is designated to support the commencement of full operations and expand revenue sources.

“Refunds for excess or rejected applications, including interest where applicable, will be processed through Real Time Gross Settlement or NIBSS Electronic Funds Transfer into accounts listed in application forms. Payments will be handled by Pace Registrars Limited no later than February 17, 2026. At the same time, allotted shares will be credited electronically to investor accounts with the Central Securities Clearing System. Applicants without CSCS accounts will have shares held temporarily in a registrar pool account until account documentation is submitted,” it said.

Data from the offer shows participation by first-time shareholders in a financial services company, indicating a broader investor base.

In its FY25 interim results, the group reported a 99 percent increase in profit before tax following 102 percent growth recorded in 2024. Gross earnings rose to N476.5 billion, total assets reached N3.92 trillion, customer deposits increased to N2.98 trillion, and shareholders’ funds rose to N24.0 billion. The cost-to-income ratio declined to 63 percent from 72 percent in the prior year.

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The statement said operations are conducted through subsidiaries, including Sterling Bank Limited, The Alternative Bank Limited, and SterlingFI Wealth Management. The company said the structure supports activity across multiple segments and revenue sources.

The recapitalisation of its banking subsidiaries has been completed, with Sterling Bank Limited and The Alternative Bank Limited receiving approvals in January 2026, confirming compliance with revised capital thresholds. The Alternative Bank operates more than 150 service points and runs programmes including Mata Zalla, which trains women as electric tricycle drivers and mechanics, and an agricultural initiative in Plateau State.

Sterling Financial Holdings Company Plc stated that the capital raised will be deployed across its subsidiaries to support lending, operations, and economic activity.