Sterling Financial Repositions Share Structure to Support Growth Strategy

Sterling Financial Holdings Company Plc, also known as Sterling Financial, has initiated its approved share capital reconstruction. This exercise involves consolidating every 10 ordinary shares into a single new ordinary share. The purpose of this share reduction is to improve the company's capital structure, support strategic growth, and strengthen its position among institutional and retail investors.

The reconstruction is part of Sterling Financial's efforts to optimize its share structure as it aims for sustainable earnings growth and stronger returns. The restructuring process was temporarily suspended for trading in the Group's shares on the Nigerian Exchange Limited (NGX) from September 23, 2026, to October 7, 2026. This suspension was necessary to allow CSCS and Pace Registrars Limited to reconcile holdings and update the shareholder register.

Trading in the Group's shares will resume following completion and confirmation by NGX. The Group's subsidiaries, Sterling Bank, The Alternative Bank, and SterlingFI Wealth Management, continue to operate as usual. The revised share structure is expected to facilitate more efficient price formation and enhance the company's appeal to investors.

To implement the reconstruction, the nominal value of each issued ordinary share is being reduced from 50 kobo to 50 kobo. The total issued share capital will decrease from approximately N34.25 billion to N3.43 billion. The excess N30.83 billion will be transferred to a Share Reconstruction Reserve, leaving total shareholders' funds unchanged.

Shareholders approved the reconstruction at the Annual General Meeting on June 9, 2026. The necessary regulatory approvals have been obtained, and a Federal High Court order confirmed the share reduction exercise on September 22, 2026. Upon completion, the economic value of the business will not be affected, as the proportional price adjustment does not increase the business's worth.