Sterling Financial Holdings Company Plc has initiated its share capital reconstruction, consolidating ten existing ordinary shares into one new ordinary share. This move aims to enhance capital-structure efficiency, support strategic growth, and strengthen the Group's positioning with investors. The company had previously expanded its equity base through multiple capital raises.
As part of the reconstruction process, trading in Sterling Financial's shares on the Nigerian Exchange Limited (NGX) was temporarily suspended on September 23, 2026. The suspension period is set to last up to ten working days, ending on October 7, 2026. During this time, the Central Securities Clearing System Plc (CSCS) and Pace Registrars Limited will reconcile holdings and update the shareholder register.
The share consolidation was approved by shareholders at the Annual General Meeting on June 9, 2026. Sterling Financial has obtained the necessary regulatory approvals, and an order from the Federal High Court, dated September 22, 2026, confirmed the share reduction exercise. The company expects the revised share structure to facilitate more efficient price formation and increase its appeal to institutional and retail investors.
Under the new structure, the total number of issued ordinary shares will decrease from 68.502 billion to 6.850 billion, with each share retaining a nominal value of 50 kobo. This reclassification does not affect total shareholders' funds and is not a fresh capital raise or cash distribution. For individual shareholders, every 10,000 existing shares will be converted into 1,000 reconstructed shares, with a corresponding adjustment to the reference price.
The company assured that the calculated holding value for individual shareholders will remain unchanged at the point of adjustment. However, actual trading prices may fluctuate when trading resumes. Sterling Financial's move into this phase follows a strong first half, with a 20.4 percent growth in profit after tax to N50.3 billion, driven by gross earnings of N279.6 billion.
During the first half, Sterling Financial's total assets reached N4.67 trillion, while shareholders' funds increased by 27.8 percent to N547.7 billion. The company stated that the share reconstruction, alongside adjusted financial disclosures, aims to make per-share performance easier to assess across reporting periods.
The company believes that the reconstruction will support more efficient price formation and strengthen its appeal to investors. With the regulatory approvals and court order in place, Sterling Financial is set to complete its share consolidation exercise and resume trading on the NGX.
Key points
- Sterling Financial Holdings Company Plc has commenced its approved share capital reconstruction.
- The exercise involves consolidating ten existing ordinary shares into one new ordinary share.
- Trading in the Group's shares on the NGX was temporarily suspended on September 23, 2026.
