Sterling HoldCo Secures Shareholder Mandate for $400 Million Capital Raise and Share Reconstruction
Sterling Financial Holdings Company Plc has received decisive shareholder approval for a substantial capitalisation strategy, authorising a $400 million fundraising initiative and a significant share reconstruction exercise. This dual-pronged approach is designed to bolster the financial services group’s capacity for future expansion and to proactively address evolving regulatory imperatives.
The critical resolutions were formally adopted during the company’s 3rd Annual General Meeting (AGM), conducted virtually on June 9, 2026. This development was subsequently communicated via a notice signed by Sunny Kanabe, the company’s secretary, and disseminated through the Nigerian Exchange Group (NGX).
Under the approved framework, Sterling HoldCo is empowered to raise up to $400 million, or its naira equivalent, through a diversified array of financial instruments. These may include ordinary shares, preference shares, bonds, global depositary receipts, or a strategic combination thereof, to be issued across both domestic and international capital markets. The execution of this capital raise is slated to employ various mechanisms such as public offers, private placements, rights issues, or other approved methods, contingent upon securing the necessary regulatory clearances.
Concurrently, shareholders sanctioned a comprehensive restructuring of the company’s share capital. This involves a 10-for-1 share consolidation coupled with a capital reduction, aimed at optimising the group’s financial architecture. The consolidation will reduce the existing 68.5 billion ordinary shares to approximately 6.85 billion shares. As part of this restructuring, approximately 61.65 billion ordinary shares will be cancelled, thereby reducing the company’s issued share capital to N3.43 billion, comprising 6.85 billion ordinary shares of 50 kobo each. This reduction is subject to formal confirmation by the Federal High Court, with the resultant amount to be transferred to a dedicated share reconstruction reserve account. The board has been granted broad authority to undertake all requisite actions, including obtaining court sanction, filing regulatory documentation, appointing expert advisors, and overseeing the complete implementation of the capital restructuring process.
The AGM also saw shareholders endorse the group’s audited financial statements for the fiscal year ending December 31, 2025. Furthermore, Aisha Bashir and Abubakar Suleiman were re-elected as directors, having retired by rotation.
Sterling HoldCo’s financial performance in 2025 demonstrated robust growth. The group reported gross earnings of N476.5 billion, a significant 46 percent increase from N326.82 billion in 2024. This expansion was propelled by substantial gains in both interest and non-interest income. Interest income rose by 43 percent to N369.6 billion, attributed to an enlarged loan and advances portfolio and enhanced yields on investment securities. Non-interest income experienced a 57.3 percent surge, bolstered by increased trading income and growth in fees and commissions.
The group’s total assets expanded by 14 percent to N3.92 trillion in 2025, up from N3.54 trillion in 2024, signalling an augmented market presence. Customer deposits also saw an 18 percent increase, reaching N2.98 trillion in 2025, reflecting the group’s success in deepening customer engagement and promoting product adoption across its platforms.
As of June 16, 2026, Sterling HoldCo’s stock closed at N7.80 per share on the NGX, marking a 3.3 percent gain from its prior closing price of N7.55. The stock has appreciated by 10.6 percent year-to-date from its opening price of N7.05, positioning it as the 85th best performing stock on the NGX for the period.
