Sterling Financial Holdings Company Plc has secured the Central Bank of Nigeria’s (CBN) approval for an additional N75bn in its capital raise.
This development marks the final phase of a successful recapitalization effort that began with a private placement in September 2024.
The private placement, completed in September 2024, provided a robust foundation for Sterling’s recapitalization strategy.
Building on this momentum, the company launched a Rights Issue in October 2024, designed to allow existing shareholders an exclusive opportunity to increase their stakes in the company and partake in its ongoing growth narrative.
The Rights Issue garnered significant interest and participation, underscoring the trust and confidence Sterling has built among its shareholder base. This enthusiastic response reflects the company’s track record of performance and strategic vision for sustained growth.
It is anticipated that the recapitalisation process will be completed with a Public Offer early next year, allowing wider participation from the public and further strengthening its commitment to shared value creation.
Group Chief Executive, Yemi Odubiyi described the capital injection and the approvals as validation of the company’s strategic direction and operational excellence.
“This milestone reflects the confidence of regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond. Our enhanced capital base empowers us to pursue transformative opportunities, deliver sustainable value to all stakeholders and drive impact across critical sectors of the Nigerian economy,” he stated.
Odubiyi emphasised the company’s evolution from its origins as a merchant bank to its current status as a diversified financial holdings company. Powered by cutting-edge technology and a flexible operational model, the company has consistently demonstrated its ability to navigate market difficulties and seize growth opportunities.
Reflecting on Sterling’s accomplishments, Odubiyi acknowledged the instrumental role of stakeholders, including regulators, investors, and customers.
“We are grateful for the unwavering support and trust in our strategy, which has been pivotal to our journey. This recapitalisation strengthens our ability to unlock new opportunities, create value, and drive economic growth,” he added.
The capital boost follows a year marked by strong financial performance and significant strategic achievements for Sterling.
In the first half of 2024, the company recorded a 51 per cent increase in profit before tax compared to the same period in 2023 and achieved a 20 per cent growth in total assets.