Sterling Financial Holdings Company Plc has commenced its approved share capital reconstruction. The exercise involves consolidating every ten existing ordinary shares into one new ordinary share. This move aims to improve capital-structure efficiency, support strategic growth, and strengthen the Group's positioning with institutional and retail investors. The reconstruction follows a successful first half for Sterling Financial, with a 20.4% growth in profit after tax to ₦50.3 billion and gross earnings of ₦279.6 billion.
The share capital reconstruction is part of Sterling Financial's approach to optimising its share structure as it pursues sustainable earnings growth and stronger returns. The exercise led to the temporary suspension of trading in the Group's shares on the Nigerian Exchange Limited (NGX) on September 23, 2026. The suspension period, which runs for up to ten working days, will allow the Central Securities Clearing System Plc (CSCS) and Pace Registrars Limited to reconcile holdings and update the shareholder register.
Sterling Financial's total assets reached ₦4.67 trillion, while shareholders' funds increased 27.8% to ₦547.7 billion, supported by the Group's capital raise. The reconstruction does not constitute a fresh capital raise or a cash distribution. Instead, it involves reducing issued ordinary shares from 68,502,331,708 to 6,850,233,171, with a corresponding adjustment to the reference price. This reclassification leaves total shareholders' funds unchanged.
Shareholders approved the reconstruction at the Annual General Meeting on June 9, 2026. The requisite regulatory no-objections have been obtained, and an order of the Federal High Court, dated September 22, 2026, confirmed the share reduction exercise. For individual shareholders, every 10,000 existing shares will become 1,000 reconstructed shares, with a corresponding tenfold adjustment to the reference price. This preserves the calculated holding value at the point of adjustment.
The reconstruction aims to support more efficient price formation and strengthen Sterling Financial's appeal to institutional and retail investors. A higher per-unit reference price is part of the Group's intended positioning for a valuation that more fully reflects its earnings capacity, capital strength, and growth prospects. However, sustained valuation improvement will depend on operating performance, returns on capital, investor demand, and market conditions.
Conversion of eligible holdings is automatic and requires no application or payment. Shareholders with valid CSCS account and stockbroker details will have their reconstructed shares credited electronically without further action. Holders of physical certificates should contact Pace Registrars and a licensed stockbroker for assistance in converting their holdings into electronic form and supplying the required account details.
Services across Sterling Financial's subsidiaries, including Sterling Bank, The Alternative Bank, and SterlingFI Wealth Management, continue as usual. The Group expects the revised share structure to make per-share performance easier to assess across reporting periods and support sharper comparisons with relevant sector peers. Shareholders can check their revised balances through their stockbroker, CSCS, or Pace Registrars and report any missing or incorrect balance promptly for reconciliation.
Key points
- Sterling Financial Holdings has started its share capital reconstruction, consolidating every ten existing shares into one new share.
- The reconstruction aims to improve capital-structure efficiency, support strategic growth, and strengthen the Group's positioning with investors.
- The exercise does not constitute a fresh capital raise or a cash distribution, and total shareholders' funds remain unchanged.
