Sterling Financial Holdings Company PLC has recorded a major achievement in its recapitalisation efforts, securing ₦75 billion in additional capital through a private placement approved by the Central Bank of Nigeria (CBN).
This milestone, achieved in September 2024, represents a key step in strengthening the company’s capital base. Following the success of the private placement, Sterling introduced a Rights Issue in October 2024. This initiative allowed existing shareholders to increase their stakes in the company and demonstrated strong investor confidence. Regulatory approval for the Rights Issue is currently in progress.
Additionally, Sterling plans to launch a Public Offer in early 2025, creating an opportunity for the wider public to invest in the company. This will not only broaden participation but also solidify Sterling’s focus on shared value creation.
Speaking on the development, Group Chief Executive Yemi Odubiyi described the approval as a testament to the company’s vision and operational strength. He noted that the enhanced capital base would enable Sterling to explore new opportunities, deliver sustainable value, and drive impact across critical sectors of the Nigerian economy.
Odubiyi further emphasized Sterling’s transformation from a merchant bank to a dynamic financial holdings company, leveraging innovative technology and operational agility to navigate challenges and seize growth opportunities.
Reflecting on the company’s progress, Odubiyi acknowledged the critical role played by regulators, investors, and customers in the success story. “Their support and trust have been pivotal in achieving this milestone,” he said.
Sterling’s recapitalisation efforts come after a year of impressive financial performance. As of December 2024, the company reported a 19% increase in its stock price, contributing to a remarkable three-year growth of over 287%. In the first half of 2024, Sterling achieved a 51% rise in profit before tax compared to the same period in 2023, alongside a 20% increase in total assets.
These achievements underscore the company’s resilience and ability to navigate Nigeria’s challenging economic environment, characterized by high inflation and currency fluctuations.
With its fortified capital structure, Sterling is well-positioned to execute its ambitious growth plans, deepen its impact, and set new benchmarks in Nigeria’s financial services sector. This marks a significant chapter in the company’s journey to redefine financial services in Nigeria and beyond.
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