...cements capital raise with full regulatory approval
Sterling Financial Holdings Company PLC has
achieved another milestone with the approval of the Central Bank of Nigeria
(CBN) recognising an additional ₦75 billion in its capital raise.
This approval represents the final leg of the capital
injection that was achieved through a private placement in September 2024.
Building on the private placement's success, Sterling launched a Rights Issue in October 2024, structured to provide existing shareholders the exclusive opportunity to deepen their stakes in the company and share in its growth story.
The Rights Issue received significant interest and
participation, highlighting the confidence and trust the company has cultivated
among its shareholders over the years. Regulatory approval for the process is
currently underway, marking another significant step in the recapitalisation
journey.
The public is eagerly awaiting Sterling’s Public Offer, which
will present an exciting opportunity for individuals to invest in the company.
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 a 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 robust financial
performance and significant strategic achievements for Sterling. As at the last
week in December 2024, Sterling witnessed a 19% surge in stock price,
contributing to a remarkable three-year growth of 287.42%. In the first half of
2024, the company recorded a 51% increase in profit before tax compared to the
same period in 2023 and achieved a 20% growth in total assets.
These results demonstrate Sterling’s resilience and ability to
deliver superior outcomes despite the complexities of Nigeria’s economic
landscape, marked by high inflation and currency volatility.
As Sterling looks ahead, its focus remains firmly on
innovation, sustainability, and value creation. With a fortified capital
structure, 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 milestone
marks a transformative chapter for Sterling Financial Holdings Company PLC as
it continues to redefine the future of financial services in Nigeria and
beyond.
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