By Sandra Chukwunyere
Sterling Financial Holdings Company PLC has taken a major step in its recapitalisation journey with the Central Bank of Nigeria’s (CBN) approval of an additional ₦75 billion capital raise.
This marks the final phase of a private placement initiated in September 2024 and signifies a milestone in the company’s strategic evolution.
Building on the success of the private placement, Sterling launched a Rights Issue in October 2024, allowing existing shareholders to deepen their stakes in the company.
The initiative saw strong participation, reflecting shareholders’ trust and confidence in Sterling’s growth trajectory. While regulatory approval for the Rights Issue is ongoing, it represents another key element of the recapitalisation process.
Sterling is also preparing for a Public Offer scheduled for early 2025, designed to open investment opportunities to the broader public.
This move is expected to further solidify the company’s financial base and underscore its commitment to creating shared value for all stakeholders.
Group Chief Executive Yemi Odubiyi hailed the CBN’s approval as a testament to Sterling’s operational excellence and strategic foresight.
“This milestone reflects the confidence of regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond,” Odubiyi stated.
“Our enhanced capital base empowers us to pursue transformative opportunities, deliver sustainable value to all stakeholders, and drive impact across critical sectors of the Nigerian economy.”
Odubiyi also highlighted Sterling’s evolution from a merchant bank into a diversified financial holdings company. Leveraging cutting-edge technology and a flexible operational model, the company has consistently demonstrated resilience and growth amid market challenges.
The past year has been particularly notable for Sterling, marked by a 19% surge in stock price and a three-year cumulative growth of 287.42%. In the first half of 2024, the company achieved a 51% increase in profit before tax compared to the same period in 2023 and recorded a 20% growth in total assets.
These achievements underscore Sterling’s robust financial performance despite Nigeria’s challenging economic conditions, including high inflation and currency volatility.
As the recapitalisation process progresses, Sterling remains committed to innovation, sustainability, and value creation. Odubiyi expressed gratitude to regulators, investors, and customers for their unwavering support, noting that the strengthened capital base positions the company to unlock new opportunities and drive economic growth.
With its fortified financial structure, Sterling is poised to execute its ambitious growth plans and set new benchmarks in Nigeria’s financial services industry.
This latest development signals the start of a transformative chapter for Sterling Financial Holdings Company PLC as it continues to redefine the future of financial services in Nigeria and beyond.
