Following the success of the private placement, Sterling initiated a Rights Issue in October 2024, designed to offer existing shareholders a unique chance to increase their investments in the company and participate in its growth trajectory. The Rights Issue garnered substantial interest and engagement, underscoring the trust and confidence the company has built with its shareholders over time. Regulatory approval for this initiative is currently in progress, representing another important milestone in the recapitalization process.
The public is keenly anticipating Sterling’s forthcoming Public Offer, which will provide an exciting opportunity for individuals to invest in the company. The recapitalization process is expected to conclude with this Public Offer early next year, facilitating broader public participation and reinforcing the company’s commitment to creating shared value.
Group Chief Executive Yemi Odubiyi remarked that the capital injection and subsequent approval serve as a testament to the company’s strategic vision 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 highlighted the transformation of the company from its beginnings as a merchant bank to its present role as a diversified financial holdings entity. Leveraging advanced technology and a versatile operational framework, the company has consistently proven its capability to navigate market challenges and capitalize on growth prospects.
In reflecting on Sterling’s achievements, Odubiyi recognized the crucial contributions of stakeholders, including regulators, investors, and customers. “We appreciate the steadfast support and confidence in our strategy, which has been essential to our progress. This recapitalization enhances our capacity to explore new opportunities, generate value, and foster economic growth,” he stated.
The recent capital infusion comes after a year characterized by strong financial performance and notable strategic milestones for Sterling. By the last week of December 2024, Sterling experienced a 19% increase in stock price, contributing to an impressive three-year growth rate of 287.42%. In the first half of 2024, the company reported a 51% rise in profit before tax compared to the same timeframe in 2023, alongside a 20% increase in total assets.
These outcomes underscore Sterling’s resilience and its ability to achieve exceptional results despite the challenges posed by Nigeria’s economic environment, which is characterized by high inflation and currency fluctuations.
Looking forward, Sterling remains committed to innovation, sustainability, and value creation. With a strengthened capital base, the company is well-equipped to implement its ambitious growth strategies, enhance its influence across key sectors, and establish new standards of excellence within Nigeria’s financial services sector. This latest achievement signifies a pivotal moment for Sterling Financial Holdings Company PLC as it continues to reshape the future of financial services in Nigeria and beyond.