Sterling Financial Holdings Company PLC has reached a significant milestone with the Central Bank of Nigeria (CBN) granting approval for an additional ₦75 billion in its capital raise.
This approval marks the final phase of the capital injection, which was initiated through a private placement in September 2024.
Building on the success of the private placement, Sterling launched a Rights Issue in October 2024, offering existing shareholders an exclusive opportunity to increase their stakes in the company and participate in its growth trajectory.
The Rights Issue attracted considerable interest, reflecting the strong confidence shareholders have in Sterling’s vision and strategy. Regulatory approval for the Rights Issue is currently in progress, marking another pivotal step in the company’s recapitalisation process.
Looking forward, the public eagerly anticipates Sterling’s upcoming Public Offer, which will offer an exciting investment opportunity to individuals. The full recapitalisation process is expected to conclude with the Public Offer early next year, enabling broader public participation and further reinforcing the company’s commitment to creating shared value.
Group Chief Executive Yemi Odubiyi described the capital injection and subsequent approvals as a strong endorsement of Sterling’s strategic direction and operational excellence. “This milestone underscores the trust of regulators and stakeholders in our vision to transform financial services in Nigeria and beyond. With our enhanced capital base, we are now better positioned to seize transformative opportunities, create sustainable value, and drive meaningful impact across critical sectors of the Nigerian economy,” he said.
Odubiyi highlighted the company’s evolution from its origins as a merchant bank to its current position as a diversified financial holdings company. Leveraging cutting-edge technology and a flexible operational model, Sterling has consistently navigated market challenges while seizing growth opportunities.
Reflecting on Sterling’s achievements, Odubiyi thanked stakeholders—including regulators, investors, and customers—for their continued support and trust in the company’s strategy. “The unwavering backing we’ve received has been crucial to our progress. This recapitalisation strengthens our capacity to unlock new opportunities, create value, and drive economic growth,” he added.
This capital boost follows a year of strong financial performance and strategic success for Sterling. As of the last week in December 2024, the company saw a 19% increase in its stock price, contributing to an impressive three-year growth of 287.42%. In the first half of 2024, Sterling reported a 51% rise in profit before tax and achieved a 20% growth in total assets.
These results demonstrate Sterling’s resilience and its ability to deliver exceptional outcomes, even amid Nigeria’s challenging economic conditions, characterized by high inflation and currency volatility.
Looking ahead, Sterling remains focused on innovation, sustainability, and value creation. With a strengthened capital base, the company is well-positioned to execute its ambitious growth plans, deepen its impact across critical sectors, and set new benchmarks for excellence in Nigeria’s financial services industry. This latest achievement marks a transformative chapter for Sterling Financial Holdings Company PLC as it continues to redefine the future of financial services in Nigeria and beyond.
