Sterling Financial Holdings Company Plc has started a significant share capital reconstruction process. The company is consolidating every 10 existing ordinary shares into one new share. This move aims to optimize the company's capital structure and strengthen investor appeal. The exercise follows several rounds of capital raising that expanded the company's equity base. It comes amid stronger financial performance, with a 20.4% rise in profit after tax to N50.3 billion in the first half of 2026.
In the first half of 2026, Sterling Financial's gross earnings reached N279.6 billion, and total assets stood at N4.67 trillion. Shareholders' funds increased by 27.8% to N547.7 billion. The company said the reconstruction is designed to improve capital-structure efficiency, support sustainable growth, and facilitate more efficient price formation for its shares. This will also make per-share performance easier to assess across reporting periods and improve comparisons with sector peers.
Trading in Sterling Financial's shares on the Nigerian Exchange Limited (NGX) was suspended on September 23, 2026, for up to 10 working days, ending October 7. The suspension allows the Central Securities Clearing System Plc (CSCS) and Pace Registrars Limited to reconcile holdings and update the shareholder register. The company stated that trading will resume after completing the process and receiving confirmation from the NGX.
Under the approved reconstruction, issued ordinary shares will decrease from 68,502,331,708 to 6,850,233,171. However, each share will retain its nominal value of 50 kobo. Sterling Financial emphasized that the exercise will not alter total shareholders' funds and does not amount to a fresh capital raise or cash distribution. For shareholders, every 10,000 existing shares will become 1,000 reconstructed shares, with the reference price adjusted correspondingly.
The adjustment aims to preserve the calculated value of holdings at the point of reconstruction. Although actual market prices may rise or fall when trading resumes, voting rights, economic interests, and accrued dividend entitlements will remain proportional to shareholders' reconstructed holdings. Future dividends, when declared, will be calculated on the new share base.
Shareholders approved the exercise at the company's Annual General Meeting on June 9, 2026. Regulatory no-objections have also been obtained, and the Federal High Court confirmed the share reduction in an order dated September 22, 2026. The company has obtained all necessary approvals for the reconstruction process.
The share reconstruction is expected to enhance the company's financial structure and appeal to investors. With the new share base, Sterling Financial aims to provide a more efficient and sustainable platform for growth. The company's management expressed confidence that the reconstruction will position the company for long-term success.
Key points
- Sterling Financial Holdings Company Plc has commenced a major share capital reconstruction, consolidating every 10 existing ordinary shares into one new share.
- The reconstruction aims to improve capital-structure efficiency, support sustainable growth, and facilitate more efficient price formation for its shares.
- The exercise follows several rounds of capital raising that expanded the company's equity base and comes amid stronger financial performance.
