Sterling Financial Holdings Company Plc has started its approved share capital reconstruction, 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 exercise follows a strong first half, with profit after tax growing 20.4% to ₦50.3 billion on gross earnings of ₦279.6 billion.
The Group's total assets reached ₦4.67 trillion, while shareholders' funds increased 27.8% to ₦547.7 billion, supported by a capital raise. The reconstruction is part of Sterling Financial's approach to optimising its share structure as it pursues sustainable earnings growth and stronger returns. To implement the exercise, trading in the Group's shares on the Nigerian Exchange Limited (NGX) was temporarily suspended on Wednesday, 23 September 2026.
The suspension period runs for up to ten working days, through Wednesday, 7 October 2026, allowing the Central Securities Clearing System Plc (CSCS) and Pace Registrars Limited to reconcile holdings and update the shareholder register. Resumption of trading will be communicated following completion and confirmation by NGX. Services across the Group's subsidiaries – Sterling Bank, The Alternative Bank, and SterlingFI Wealth Management – continue as usual.
Sterling Financial expects the revised share structure to support more efficient price formation and strengthen its appeal to institutional and retail investors. The reconstruction will make per-share performance easier to assess across reporting periods and support sharper comparisons with relevant sector peers. 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.
Shareholders approved the reconstruction at the Annual General Meeting on 9 June 2026, and the requisite regulatory no-objections have been obtained. An order of the Federal High Court, dated 22 September 2026, confirmed the share reduction exercise. Under the approved structure, issued ordinary shares will reduce from 68,502,331,708 to 6,850,233,171, each retaining a nominal value of 50 kobo.
Issued share capital will consequently reduce from approximately ₦34.25 billion to ₦3.43 billion, with approximately ₦30.83 billion transferred to a Share Reconstruction Reserve. This reclassification leaves total shareholders' funds unchanged and does not constitute a fresh capital raise or a cash distribution. For individual shareholders, every 10,000 existing shares will become 1,000 reconstructed shares, with a corresponding tenfold adjustment to the reference price.
Conversion of eligible holdings is automatic and requires no application or payment. Shareholders with a valid CSCS account and stockbroker details will have their reconstructed shares credited electronically without further action. The reconstruction does not itself determine the amount of any future dividend, and accrued dividend entitlements remain intact. Future dividends, when declared, will be calculated on the reconstructed share base.
Key points
- Sterling Financial Holdings has commenced a share capital reconstruction to support its growth strategy.
- The reconstruction involves consolidating every ten existing shares into one new share.
- The exercise aims to improve capital-structure efficiency and strengthen the Group's positioning with investors.
