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Sterling HoldCo Advances Recapitalisation Efforts, Secures Full Regulatory Approval for Capital Raise
Sterling Financial Holdings Company PLC has achieved a significant milestone with the approval of the Central Bank of Nigeria (CBN) to recognise an additional ₦75 billion in its capital raise.
This approval marks the final stage of the capital injection secured through a private placement in September 2024.
Building on the success of the private placement, Sterling launched a Rights Issue in October 2024, designed to offer existing shareholders an exclusive opportunity to deepen their investments and benefit from the company’s growth. The Rights Issue attracted considerable interest, demonstrating the strong confidence and trust that Sterling has earned from its shareholders over the years. Regulatory approval for this process is currently underway, marking another important step in the company’s recapitalisation journey.
The public eagerly anticipates Sterling’s upcoming Public Offer, which will present an exciting opportunity for individuals to invest in the company. The recapitalisation process is expected to be completed with the Public Offer early next year, allowing for wider participation and further strengthening Sterling’s commitment to creating shared value.
Group Chief Executive Officer, Yemi Odubiyi, described the capital injection and approval as a validation of the company’s strategic direction and operational excellence. “This milestone reflects the confidence of both regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond. Our enhanced capital base enables us to pursue transformative opportunities, deliver sustainable value to all stakeholders, and drive impact across key sectors of the Nigerian economy,” he stated.
Odubiyi highlighted the company’s evolution from its origins as a merchant bank to its current position as a diversified financial holdings company. Powered by advanced technology and a flexible operational model, Sterling has consistently demonstrated its ability to navigate market challenges and seize growth opportunities.
Reflecting on Sterling’s achievements, Odubiyi acknowledged the critical role played by stakeholders, including regulators, investors, and customers. “We are deeply grateful for the unwavering support and trust in our strategy, which has been instrumental to our progress. This recapitalisation strengthens our ability to unlock new opportunities, create value, and contribute to economic growth,” he added.
The capital boost follows a year of robust financial performance and strategic achievements for Sterling. As of the last week of December 2024, Sterling’s stock price surged by 19%, 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 underscore Sterling’s resilience and its capacity to deliver superior outcomes despite Nigeria’s challenging economic environment, characterised by high inflation and currency volatility.
Looking ahead, Sterling remains focused on innovation, sustainability, and value creation. With a strengthened capital structure, the company is well-positioned to execute its ambitious growth plans, expand its impact across key 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 shape the future of financial services in Nigeria and beyond.
