Sterling HoldCo Secures ₦75bn, Nears Recapitalisation Goal
Sterling Financial Holdings Company PLC has reached a significant milestone in its recapitalisation journey, securing Central Bank of Nigeria (CBN) approval for an additional ₦75 billion capital injection. This marks the culmination of a private placement concluded in September 2024, forming a cornerstone of the company’s growth strategy.
Following the private placement, Sterling launched a Rights Issue in October 2024, offering existing shareholders the opportunity to deepen their stakes. The initiative saw robust participation, reflecting strong investor confidence in the company. Regulatory approval for the Rights Issue is underway, paving the way for the next phase: a Public Offer slated for early 2025, which will broaden investment opportunities for the public and strengthen Sterling’s financial foundation.
Group Chief Executive, Yemi Odubiyi, celebrated the capital injection and CBN approval as validation of Sterling’s vision and operational strength. “This milestone reflects the confidence of regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond. Our enhanced capital base empowers us to pursue transformative opportunities, deliver sustainable value, and drive impact across critical sectors of the Nigerian economy,” he said.
Odubiyi also highlighted Sterling’s evolution from a merchant bank to a diversified financial holdings company, underpinned by advanced technology and a flexible operational model. He credited the company’s resilience to the unwavering support of stakeholders, including regulators, investors, and customers. “This recapitalisation strengthens our ability to unlock new opportunities, create value, and drive economic growth,” he added.
The capital boost comes amidst a year of strong financial performance for Sterling. As of December 2024, the company’s stock price surged by 19%, contributing to a three-year growth of 287.42%. Additionally, Sterling reported a 51% increase in profit before tax in the first half of 2024 compared to the same period in 2023, alongside a 20% growth in total assets.
With its fortified capital structure, Sterling is poised to execute its ambitious growth plans, deepen its impact across key sectors, and set new benchmarks in Nigeria’s financial services industry. This achievement signifies a transformative chapter for the company as it continues to shape the future of financial services in Nigeria and beyond.
