Sterling Financial Holdings Company Plc has started its approved share capital reconstruction, a move aimed at improving capital-structure efficiency and supporting the company's strategic growth. The exercise involves consolidating every ten existing ordinary shares into one new ordinary share. This comes after a strong first half for the company, with profit after tax growing 20.4 percent to ₦50.3 billion on gross earnings of ₦279.6 billion.
The company's total assets reached ₦4.67 trillion, while shareholders’ funds increased 27.8 percent 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. The company expects the revised share structure to support more efficient price formation and strengthen its appeal to institutional and retail investors.
To implement the exercise, trading in Sterling Financial'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. During this time, the Central Securities Clearing System Plc (CSCS) and Pace Registrars Limited will reconcile holdings and update the shareholder register.
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.
The reconstruction does not constitute a fresh capital raise or a cash distribution, and total shareholders’ funds remain unchanged. 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, although actual trading prices may rise or fall when trading resumes.
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. The company has assured that services across its subsidiaries – Sterling Bank, The Alternative Bank, and SterlingFI Wealth Management – continue as usual.
The share capital reconstruction is expected to 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.
Key points
- Sterling Financial Holdings has commenced a share capital reconstruction to optimise its capital structure and support strategic growth.
- The reconstruction involves consolidating every ten existing shares into one new share.
- The exercise is expected to support more efficient price formation and strengthen the company's appeal to investors.
